RBI MPC LIVE: Rate cut or hold? Key decisions today amid falling Rupee and low inflation - Economy News

RBI Monetary Policy Committee Meeting: Key Decisions Today

The Reserve Bank of India's Monetary Policy Committee will announce its crucial decisions today at 10 am, following a 3-day meeting that commenced on December 3.

Why the RBI Meeting is Crucial

The fifth RBI meeting of FY26 is significant as it comes at a time when the rupee hit a lifetime low this week, breaching the 90/$ mark. Additionally, inflation in October fell to its lowest level in the current series, and the Q2 GDP growth jumped to a 6-quarter high above 8%, exceeding estimates.

Market Expectations: Will RBI Prioritise Growth or Inflation?

Analysts have stated that the MPC has a challenging task ahead, deciding whether to prioritize growth or inflation. The market remains divided on expectations, with a recent poll conducted by Financial Express indicating:

• 8 out of 15 economists polled expecting no rate cut
• 7 anticipating a 25 basis points (bps) reduction

Expert Predictions

JM Financial expects the RBI to raise its FY26 growth forecast by at least 20 basis points to 7%, while lowering its inflation projection by 40 basis points to 2.2%. The analyst emphasized that the RBI's main objective is to support growth while maintaining price stability.

BNP Paribas, however, does not expect the RBI to cut rates, citing factors such as the weak rupee, external account uncertainties, and a steady GDP outlook may push the MPC to stay cautious.

Event Details

Today, Governor Sanjay Malhotra will announce the Repo Rate decision, as well as the GDP and inflation forecast, following the RBI MPC December 2025 meeting.