Mumbai: The Reserve Bank of India (RBI) has cut the repo rate by 25 basis points to 5.25 percent, while keeping its policy stance Neutral. The decision was made after the three-day meeting of the Monetary Policy Committee (MPC), led by Governor Sanjay Malhotra, held from December 3 to 5. This was the fifth bi-monthly meeting of FY26.

#WATCH | Mumbai | RBI Governor Sanjay Malhotra says, "The MPC (Monetary Policy Committee) voted unanimously to reduce the policy repo rate by 25 basis points to 5.25% with immediate effect."

(Source: RBI) pic.twitter.com/hgzngCLJqe — ANI (@ANI) December 5, 2025

Economic Background

The MPC met at a time when India’s economy is growing strongly, inflation is at historically low levels, and the rupee is near a record low of around 90 per US dollar.

Thes

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