The Monetary Policy Committee (MPC) of the Reserve Bank of India announced a 25 basis points cut to its policy repo rate to 5.25% on Friday, December 5, after maintaining a status quo over the last two policies in August and October. The MPC had cut interest rates by 100 basis points across February, April and June.

The decision to cut interest rates was taken unanimously. Stance was maintained as "neutral." All MPC members, barring Professor Ram Singh, voted to keep the stance "neutral". Professor Ram Singh voted for an "accommodative" stance.

The interest rate cut policy decision comes on the back of India reporting strong GDP growth of 8.2% in the second quarter and the first half of the current financial year. However, inflation figures on the retail side were well below the RBI mand

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