The Reserve Bank of India (RBI) may maintain the repo rate unchanged at its upcoming December monetary policy review meeting, given the country's strong GDP growth.
The next Monetary Policy Committee (MPC) meeting is scheduled for December 3-5, 2025, and expectations for a rate cut appear to have faded.
According to an SBI Research report, the broader trend is that monetary policy has entered a phase of pause with differences across geographies.
The SBI Research report suggested that it is essential to continue with decisions beyond direct rate actions, but towards affirmative actions outside policy space.
The RBI governor noted that headline inflation had moderated considerably, providing the MPC with confidence to maintain the rate stance.
As per the RBI Governor, India has largely managed to steer its inflation trajectory in a favourable direction, unlike many countries, including advanced economies.
