The Reserve Bank of India (RBI) on Friday, December 5, 2025, reduced the repo rate by 25 basis points to 5.25% from 5.50%, following a three-day meeting of the Monetary Policy Committee (MPC) chaired by Governor Sanjay Malhotra. This was the fifth bi-monthly review for FY26. The central bank maintained a neutral policy stance.

The RBI also revised its projections, raising GDP growth for FY26 to 7.3% from 6.8% and lowering the CPI inflation forecast to 2% from 2.6%. To boost liquidity, the central bank announced open market operations (OMO) purchases of government securities worth ₹1 lakh crore and a three-year USD/INR buy-sell swap of $5 billion in December. With this cut, the repo rate has been lowered by a cumulative 125 basis points in 2025.

The rate cut has drawn responses from acr

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