RBI Monetary Policy 2025 LIVE: Will Governor Sanjay Malhotra-led MPC deliver a repo rate cut today?

RBI Monetary Policy 2025 LIVE: Decision Today

The Reserve Bank of India (RBI) is set to announce its monetary policy decision today, Friday, 5 December 2025. The RBI Governor Sanjay Malhotra-headed Monetary Policy Committee (MPC) has concluded its fifth bi-monthly meeting for FY26, with the repo rate decision to be announced today.

RBI Policy Expectations

Analysts are divided on whether the RBI’s MPC will reduce the repo rate or not, with some expecting a pause and others anticipating a 25-basis points (bps) cut to 5.25%.

• Robust Economic Growth: India’s economic growth has been propped up by policy support, with the GDP at a six-quarter high.
• Historically Low Inflation: Retail inflation is near historic lows, which may influence the RBI’s decision.
• Rupee Depreciation: The Indian rupee is trading near an all-time low, which could be a decisive policy motivator.

Analysts believe a textbook approach would suggest a pause, but the RBI must remain forward-looking. Some economists feel that the clear near-term inflation visibility strengthens the case for a December cut, even with a possible split MPC.

Recent RBI Policy Decisions

• Repo Rate Reductions: The RBI lowered the repo rate by 100 bps in three meetings, beginning in February.
• Repo Rate Unchanged: In its October policy, the MPC kept the repo rate unchanged at 5.50% and maintained the policy stance as ‘Neutral’.
• GDP Growth Estimates: The RBI raised FY26 GDP growth estimates to 6.8% from 6.5% earlier.
• CPI Inflation Forecast: The RBI also reduced FY26 CPI inflation forecast to 2.6% from 3.1% earlier.