RBI MPC Date And Schedule: Will RBI Cut Repo Rate? What To Expect

The Reserve Bank of India’s Monetary Policy Committee (MPC) is set to hold its final bi-monthly meeting of calendar year 2025 this week, with markets closely watching for signals on further monetary easing amid unusually low inflation and signs of softening consumption. RBI MPC December 2025 Meeting Schedule The three-day MPC meeting, chaired by RBI Governor Sanjay Malhotra, will take place from December 3 to December 5, 2025. The monetary policy decision, including any change in the repo rate and stance, will be announced on Friday, December 5, 2025, at 10:00 AM IST. Repo Rate Journey in 2025 So Far The RBI has already reduced the repo rate by a cumulative 100 basis points in 2025 through three separate actions. The first came in February with a 25-bps cut, followed by a 25-bps cut in April and then in June with a 50-bps cut (accompanied by a phased 100-bps CRR reduction). Advertisement Since the June move, the central bank has kept the repo rate unchanged at 5.50% in both the August and October reviews while shifting its stance to “neutral” to retain flexibility. Record-Low Inflation Opens Door for Rate Cut October 2025 consumer price inflation plunged to an all-time low of 0.25%, driven primarily by a sharp drop in food prices and favorable base effects. Core inflation, however, remained steady near 4.4%. Advertisement The dramatic cooling in headline inflation has given the RBI significant room to support growth without worrying about price pressures in the near term. What Economists Are Saying Ahead of December 5 Announcement Most economists polled by Reuters expect the RBI to deliver a 25 basis points repo rate cut, taking the policy rate to 5.25%. Some participants have not ruled out a slightly larger 50 bps reduction if the central bank wants to front-load support to consumption. Upasna Bhardwaj, Chief Economist, Kotak Mahindra Bank, told Reuters, “While the inflation trajectory is likely to remain benign, the RBI will need to separate festive and GST-related demand from genuine cyclical recovery. We remain cautious on the sustainability of the recent growth pickup and see scope for further easing.” Garima Kapoor, Economist, Elara Securities, noted, “The all-time low CPI print, led by food disinflation and a high base, means FY26 inflation will significantly undershoot the RBI’s earlier 2.6% estimate – likely coming below 2%. This clears the path for a 25 bps cut in December and another similar move in February 2026,” as reported by Reuters. Teresa John, Lead Economist, Nirmal Bang, said, “We anticipate a 25 bps cut supported by further expected downward revision in the FY26 CPI forecast.” Key Factors the MPC Will Weigh Sustaining growth momentum amid weak rural and urban consumption Risk of prolonged sub-2% inflation turning into deflationary pressures Global uncertainties, including potential tariff actions under the new U.S. administration Comfortable liquidity and stable external sector indicators Investors and households will get clarity on Friday morning when Governor Sanjay Malhotra addresses the media after the policy announcement.