RBI cuts repo rate by 25 bps

RBI MPC 2025 Highlights, RBI Monetary Policy Meeting Outcomes, RBI MPC Meeting December 2025 News & Highlights: The RBI’s rate-setting panel on Friday decided to unanimously cut the policy repo rate by 25 basis points (bps) from 5.50 per cent to 5.25 per cent amid a strong second quarter GDP growth, low retail inflation and a depreciating Rupee.
The monetary policy stance continues to be neutral.
The RBI also announced liquidity enhancement measures including, conducting an open market operation (OMO) purchase of Government Securities for ₹1 lakh crore this month.
The central bank will also conduct a three-year buy/sell US Dollar for $5 billion.
The repo rate was last cut by 50 basis points from 6 per cent to 5.50 per cent in the June 2025 policy review. Then the monetary policy stance was changed from accommodative to neutral.
RBI Governor Sanjay Malhotra said: “The MPC concluded that there has been a significant moderation in inflation. Moreover, the prevailing global uncertainties and tariff related developments are likely to decelerate growth in H2:2025-26 and beyond. The current macroeconomic conditions and the outlook has opened up policy space for further supporting growth. “
However, the MPC noted that the impact of the front-loaded monetary policy actions and the recent fiscal measures is still playing out. The trade related uncertainties are also unfolding.
“The MPC, therefore, considered it prudent to wait for the impact of policy actions to play out and greater clarity to emerge before charting the next course of action. Accordingly, the MPC unanimously voted to keep the policy repo rate unchanged at 5.5 per cent and decided to retain the stance at neutral.,” Malhotra said
Here are the highlights from the Reserve Bank of India’s Monetary Policy Committee (MPC) meetings from October ‘25, August ‘25, June ’25, April ‘25 and February ‘25. The next MPC meet, which also happens to be the last for this fiscal year, is scheduled for February 4-6, 2025.
RBI MPC Meeting December 2025 Key Highlights & Outcomes:
RBI cuts Repo rate cut by 25 bps to 5.25%.
RBI to conduct 3-year dollar-rupee swap worth $5 billion to inject liquidity
Real GDP growth 7.3%; up 0.5% for the full fiscal year
Real GDP growth accelerated to 8.2 per cent in Q2, buoyed by consumption spending
December 5, 2025 17:38
This live blog is now closed.
December 5, 2025 16:11
RBI MPC Meet Live: Sarvjit Singh Samra, MD & CEO, Capital Small Finance Bank reaction
“With inflation projections sharply revised downward and GDP estimates upgraded, the policy stance turning affirmatively growth-supportive will ease funding costs and strengthen liquidity across the banking system. For banking industry, this environment enhances the ability to expand credit, better transmission of interest rate cuts and support productive segments of the economy.”
December 5, 2025 16:10
RBI MPC Meet Live: Rajesh Sharma - Managing Director, Capri Global reaction
“With 125 basis points of rate cuts already delivered this year, the message is clear: keep domestic consumption resilient and sustain growth momentum through liquidity and access to credit. The current rate cut is set to spur demand for retail credit, especially among small businesses and the housing sector, as cheaper loans improve affordability and ease repayment burden. Additionally, the upward revision of GDP growth and benign inflation estimates indicates positive economic sentiment, signalling that both investment and consumption are likely to rise.”
December 5, 2025 16:08
RBI MPC Meet Live: Ajay Kumar Srivastava, Managing Director and CEO, Indian Overseas Bank reaction
“On the financial sector side, bank credit growth remains healthy at 11 per cent and overall credit from bank and non-bank sources has risen by 13.1 per cent. The RBI’s ₹1 lakh crore OMO purchases along with the 3-year USD/INR buy-sell swap will support liquidity and monetary transmission. These measures will encourage domestic investment and deepen financial access.”
December 5, 2025 15:45
RBI MPC Meet Live: Sundeep Mohindru, Founder & Promoter, M1xchange reaction
“The RBI’s decision to reduce the repo rate by 25 basis points, supported by a unanimous stance, reflects confidence in the current inflation and growth trajectory. With this move, the cumulative rate reduction in 2025 now stands at 125 basis points, marking a continued shift toward an accommodative policy environment.”
December 5, 2025 15:25
RBI MPC Meet Live: MPC decided unanimously to cut policy rate by 25 bps to 5.25 pc: RBI Guv Sanjay Malhotra
December 5, 2025 14:41
RBI MPC meet live: Mr. Rajiv Anand, Managing Director & CEO, IndusInd Bank reaction
“The MPC has used the space for easing created by CPI inflation slipping to a record low, supported by a generalised decline across key constituents. The continuation of a neutral policy stance indicates that future rate action will remain contingent on evolving macroeconomic conditions, although there is space for further easing. A durable liquidity infusion of nearly ₹1.5 trillion through bond purchases and FX swaps will support policy transmission via market rates, particularly in the sovereign bond market. Overall, easier financial conditions will help sustain growth momentum, even as external-sector headwinds persist.”
December 5, 2025 14:21
RBI MPC meet live: P D Singh, CEO, India & South Asia, Standard Chartered Bank's reaction
P D Singh, CEO, India & South Asia, Standard Chartered Bank, said, “The 25-bps rate cut announced today is backed by confidence around economic growth and well controlled inflation. The announcement of solid and timely liquidity measures to the tune of INR 1.45 lakh crore by way of G-sec open market operation (OMO) purchases and forex swaps, along with the recent GST cuts, augur well for economic activity in the coming quarters.
December 5, 2025 13:52
Ashwani Dhanawat, Executive Director & Chief Investment Officer, Shriram General Insurance reflects the MPC’s confidence in sustained disinflation
“This adjustment reflects the MPC’s confidence in sustained disinflation, while maintaining a neutral policy stance to support robust economic momentum.”
December 5, 2025 13:49
RBI MPC Meet Live: Binod Kumar, MD & CEO, Indian Bank, says Indian Bank is committed to rate transmission
“The MPC 25 bps rate cut will further bolster domestic demand against a weakening rupee. OMO purchase and 3 year buy/sell swap of dollar will further improve liquidity in the banking system. Retail customers and MSMEs can expect more affordable credit and greater confidence to plan ahead. Indian Bank is committed to rate transmission. “
December 5, 2025 13:38
RBI MPC Live Updates: Reaction from Edul Patel, CEO, Mudrex.
The RBI’s unanimous cut in the repo rate signals that inflationary pressures are easing, while the upward revision of FY26 GDP growth from 6.8 % to 7.3 % reflects renewed confidence in India’s macroeconomic resilience. Combined with the ₹1-lakh-crore OMO purchase and the three-year USD 5 billion infusion, these actions together set a supportive backdrop for risk assets including equities and crypto.
December 5, 2025 13:37
RBI MPC Live Updates: Rajeev Radhakrishnan, CFA, CIO – Fixed Income, SBI Mutual Fund, says conditions needed for transmission have been addressed.
“The RBI has utilized the available monetary space (with forward CPI estimates anchored around 4%) to ensure that the system receives adequate support for sustained growth. The conditions necessary for effective transmission have also been addressed through the announcement of durable liquidity measures, including OMOs and FX swaps.”
December 5, 2025 13:35
RBI MPC Live Updates: Rohit Arora, CEO and Co-Founder, Biz2X and Biz2Credit, says rate cuts should improve transmission for NBFCs and fintech lenders
“Today’s 25-basis-point repo cut to 5.25%, together with a clear commitment to durable liquidity via ₹1 lakh crore of OMO purchases and, a three-year $5 billion USD/INR swap is a welcome, timely move to shore up growth while inflation remains subdued.
With headline and core inflation tracking lower than earlier projections and high growth witnessed in the first half, the monetary backdrop now meaningfully eases the cost of funds for banks. This should, over time, improve transmission for NBFCs and fintech lenders as well, though the historic stickiness of transmission to nonbank lenders means the gains may come gradually.
December 5, 2025 13:28
MPC Meet Live Updates: Shailesh Chandra, President, SIAM, and MD and CEO of Tata Motors Passenger Vehicles Ltd. reinforce a supportive monetary environment for boosting consumer sentiment
December 5, 2025 13:13
RBI MPC Live Updates: Markets rally over 0.5% after RBI cuts repo rate by 25 basis points
Markets rally over 0.5% after RBI cuts repo rate by 25 basis points
Benchmark indices surged in afternoon trade on Friday after the Reserve Bank of India announced a 25 basis point repo rate cut to support growth momentum, with the Sensex climbing 491.73 points or 0.58 per cent to 85,757.05 and the Nifty gaining 158.25 points or 0.61 per cent to 26,192.00 as of 12:50 pm.
December 5, 2025 13:00
We are focusing on creating unique use cases (programmable) for CBDC in association with the state and central govts and banks launching products, says DY Guv Rabi Sankar:
December 5, 2025 13:00
RBI MPC Live Updates: Retail loans have not shown any deterioration in asset quality, says DY Guv Swaminathan
December 5, 2025 13:00
RBI MPC Live Updates: There has been minimal impact of the US' tariff on the economy; our economy is domestic led.
December 5, 2025 12:49
RBI MPC Live Updates: on lending rates going up
“If the proportion of higher interest rate loans like unsecured loans and gold loans goes up, the average lending rate goes up; all segments do not have the same interest rate”
December 5, 2025 12:44
RBI MPC Live Updates: After a fraud (in a deposit account), very less recovery happens. We trying to ensure that money is recovered quickly, says RBI Guv
December 5, 2025 12:43
RBI is doing everything possible to ensure that frauds are minimised, says RBI Guv
December 5, 2025 12:40
RBI MPC Live Updates: It has been our endeavour to give balanced supply of G-Secs of various tenors, says RBI Guv
December 5, 2025 12:36
RBI MPC Meet Live: Usually, liquidity surplus is to the tune of 0.6-1 per cent of NDTL; at Rs 1.5 lakh crore surplus, the liquidity surplus is at about 1 per cent
December 5, 2025 12:35
RBI MPC Meet Live Updates: As long as monetary transmission is happening, we will provide sufficient liquidity. that is why liquidity is in surplus, says RBI Guv
December 5, 2025 12:33
RBI MPC Live Updates: Working with other regulators to avoid mis-selling of bundled products by banks, says RBI Guv
December 5, 2025 12:29
RBI MPC Live Updates: To allow Banks in commodities derivatives market, it may need amendments to the Banking Regulation Act
December 5, 2025 12:28
RBI MPC Live Updates: Banks cannot participate in commodity derivatives as per existing regulations, says RBI Guv
December 5, 2025 12:27
RBI MPC Meet Live: Even though nominal interest rates are low, real interest rates are high, says RBI Governor on interest rates for deposits coming down
December 5, 2025 12:26
RBI MPC Meet Live: We are diversifying our holding of gold in various countries, says RBI Guv on bringing back physical gold to India
December 5, 2025 12:23
RBI MPC Meet Live: 0.25 per cent is not the right level of inflation; we target 4 per cent, says RBI Guv
December 5, 2025 12:18
RBI MPC Meet Live Updates: Going forward we expect benign inflation; we expect policy rates to be low
December 5, 2025 12:17
RBI MPC Meet Live: Poonam Gupta: When we say softening, it is from the high levels we have seen
December 5, 2025 12:17
RBI MPC Meet Live Updates: We are going by the high frequency indicators we track, says RBI Guv on H2 FY26 growth softness
December 5, 2025 12:16
RBI MPC Meet Live: We do not expect the growth in H2 to be of the same order as H1 going by the high frequency indicators, says RBI Guv
December 5, 2025 12:15
RBI MPC Meet Live: We don't target any particular credit growth rate for the economy. credit growth is a function of the growth of the economy, says RBI Guv
December 5, 2025 12:14
RBI Monetary Policy Meet Live Updates: Last 10 years, credit has grown 1X of GDP growth, says RBI Guv
December 5, 2025 12:12
RBI MPC Meet Live Updates: We let the Rupee find its correct level, says RBI Guv
December 5, 2025 12:12
RBI Monetary Policy Meet Live Updates: USD INR buy/sell swap is more of a liquidity measure; it is not to support the rupee: RBI Guv
December 5, 2025 12:10
RBI MPC Meet Live Updates: 7 per cent growth is baseline growth, says RBI Guv
December 5, 2025 12:08
RBI MPC Meet Live Updates: MPC is mostly driven by growth-inflation dynamics, says RBI Guv
December 5, 2025 12:08
RBI MPC Meet Live: We do believe that we have sufficient reserves, current account is manageable; we do believe we will be able to attract forex inflows: RBI Guv
December 5, 2025 12:08
RBI MPC Meet Live: External sector is strong, current account is manageable, and we expect good capital flows, says RBI Guv
December 5, 2025 12:07
RBI MPC Announcements Live: Our effort has been any excessive volatility, says RBI Guv
December 5, 2025 12:06
RBI MPC Announcements Live: Our stated policy is we allow markets to determine prices... markets in the long run are efficient, says RBI Guv on rupee
December 5, 2025 12:06
RBI MPC Meet Live: Having reduced the repo rate by 125 bps, we have to now concentrate on transmission, says RBI Guv
December 5, 2025 12:05
RBI MPC Live: Inflation is benign... Our expectation is it will be benign, whether it will open up headroom to cut rates further is speculation.
December 5, 2025 12:03
RBI MPC Live Updates: Deepak Agrawal, CIO-Debt, Kotak Mahindra AMC, expects RBI to be in long pause post this announcement
“We believe post this policy RBI to be in long pause. Market has given thumb up to the policy and consequently the 10 yr G-sec has moved lower by 3 bps and is trading around 6.48%”
December 5, 2025 12:01
RBI MPC Meet Live Updates: Nilesh Shah, MD Kotak Mahindra AMC, says OMOs will have to be more than what was announced
The RBI keeps pro-growth stance with a 25-bps repo rate cut meeting the expectations of a half-divided market. To convince other half of the market, OMOs will have to be more than announced and also cover long end of the curve. The communication from the RBI beyond policy will be critical to keep yields to reflect rate cut.
December 5, 2025 11:59
RBI MPC Live Updates: mit Bhagat, Co-Founder, CEO and MD, ASK Property Fund, expects rate cuts in 2025 to boost housing market
“A total rate cut of 125 bps announced in 2025 is likely to benefit the housing market, which has shown signs of stabilizing over the recent quarters.”
December 5, 2025 11:53
RBI MPC Live Reactions: RBI’s fourth rate cut of 2025 boosts affordable housing demand: Aadhar Housing MD
Rishi Anand, MD & CEO, Aadhar Housing Finance
“The RBI’s decision to reduce the repo rate by 25 bps brings the total reduction this year to 125 bps, marking the fourth rate cut in 2025 and reflecting its continued focus on supporting economic growth along with improving liquidity. This cumulative rate cut has and will bring favourable relief to borrowers, especially first-time homebuyers in the affordable housing category, as a reduction in rates cuts down their EMI burden and opens up further avenues towards homeownership.
For EWS and LIG customers, even a small rate reduction can make homeownership more accessible and boost their confidence to take the step towards owning a home. With strong demand emerging from Tier 2 and Tier 3 cities and continued government support through schemes like PMAY, the environment remains highly favourable for affordable homebuyers. This will further energise the segment and help more families move closer to securing their first home.”
December 5, 2025 11:43
RBI MPC Live Reactions: Rate cut + liquidity support keeps guidance flexible: Madhavi Arora
Madhavi Arora, Chief Economist, Emkay Global Financial Services, writes:
With inflation persistently undershooting, the RBI expectedly found it harder to ignore its core mandate of inflation management and therefore finally delivered a unanimous 25bp cut to 5.25%.
Clear near-term inflation visibility—and the need to shift away from an increasingly misplaced 1-year-ahead CPI anchor—has helped RBI with a December cut, after marking a fifth revision to FY26 CPI inflation.
RBI’s inflation forecast is now in line with ours (RBI: 2.0%, Emkay: 1.92%), even as the governor reckoned the so-called “Goldilocks” narrative as he upgraded growth to 7.3% (Emkay: 7.3%).
Tactically smart and flexible forward guidance has also complemented today’s rate easing, signalling openness to further easing—both on rates and liquidity (a departure from the June policy). Importantly, while acknowledging repeated headline undershoots, the governor also conceded that underlying price pressures are even more subdued.
The announced primary liquidity infusion of ~₹1.45tn (₹1tn of OMOs and a $5bn buy–sell swap) is constructive, albeit modestly below our expectation of Rs2tn for the rest of FY26. Even so, this injection should meaningfully aid transmission, particularly as unsterilized FX intervention is likely to continue, making the liquidity support especially timely and effective at this stage of the cycle.
We reiterate INR’s softness should not be read as rate-easing deterrent ahead, but a natural growth stabiliser.
December 5, 2025 11:41
RBI MPC Meeting Live Reactions: RBI’s rate cut and softer inflation outlook create strong credit tailwinds: UGRO Capital CFO
Shilpa Bhatter, Chief Financial Officer, UGRO Capital, writes:
“The RBI’s 25 bps rate cut to 5.25% and the sharply revised inflation outlook create a supportive environment for credit expansion. With headline CPI now projected at just 2% for FY26 and core inflation continuing to ease, the policy clearly signals confidence in domestic price stability. The liquidity measures through OMOs and the USD/INR swap will further soften funding conditions, which is positive for NBFCs and will enhance the flow of credit to MSMEs. The neutral stance gives the RBI flexibility to respond to incoming data while sustaining the growth momentum. Overall, this policy reinforces a healthy credit environment and strengthens the demand outlook across key MSME segments we serve.”
December 5, 2025 11:39
RBI MPC meeting Live Reactions: RBI's rate cut, liquidity boost signals support towards growth: Aman Shah, Equirus Family Office
Aman Shah - Head Research - Equirus Family Office, writes:
We expect inflation to gradually move toward the RBI’s long-term 4% target in FY27, which should provide a favourable backdrop for corporate profitability. The RBI’s dovish approach aimed at stimulating demand and injecting liquidity should further reinforce the growth outlook. Additionally, the announced OMO programme is likely to exert downward pressure on G-sec yields, potentially guiding them toward the 6% level over the course of this financial year.
December 5, 2025 11:36
RBI MPC Live Reactions: Liquidity boost and rate cut mark strongly supportive policy stance, says Invesco MF
Vikas Garg, head of fixed income at Invesco Mutual Fund, writes:
RBI walks the talk with a unanimous 25 bps policy rate cut, supported by a benign inflation trajectory, even as the robust 2QFY26 GDP numbers and the INR at an all-time low against the Dollar created market doubts.Forward-looking inflation appears comfortable, with 2QFY26 projected at 4.0%, which could open up space for one more rate cut. However, the growth trajectory remains the key factor. Another market positive was the announcement of an Open Market Purchase operation of G-Secs worth ₹1 lakh crore and a USD 5 billion forex swap in December to ease banking liquidity. Interestingly, to support growth, RBI acted proactively to provide liquidity in December itself, even though tightening is expected only in 4QFY26. With this approach, we expect more OMO announcements and FX swaps going forward. Overall, this is a dovish and market-supportive policy action, expected to drive yields lower.
December 5, 2025 11:34
RBI MPC meeting Live updates: V Ramachandra Reddy, Head - Treasury, Karur Vysya Bank, writes:
The RBI’s policy package felt like a bouquet of positives for the market, a rate cut, confirmed Rs 1 lakh crore OMO purchases in December, $5 billion FX swaps and a clear assurance of comfortable liquidity conditions. Hard to ask for more in the current macro environment.
On the bond market front, sentiment has turned constructive. With the Rs 1 lakh crore OMO lined up for December and expectations of continuation of OMO support in Q4, demand–supply pressures should ease meaningfully, opening scope for yields to compress further. The prospect of global index inclusion inflows in Q4 strengthens the bullish bias.
The rupee had already adjusted ahead of policy, with notable depreciation earlier in the week. A move beyond 90 could draw calibrated RBI intervention. For banks, the repo cut could trim NIMs, likely pushing any meaningful margin rebound to Q4 or Q1 of next fiscal.
From a rate outlook perspective, with the repo now at 5.25%, a long pause appears most probable. We expect the 10-year G sec to drift towards 6.30% by March 2026 and 6.40% before the end of this month, barring global shocks.
December 5, 2025 11:26
RBI MPC Live reactions: Growth beats, inflation retreats, RBI blinks: Anand Rathi Group's Sujan Hajra
Sujan Hajra, Chief Economist & Executive Director, Anand Rathi Group, writes:
We had anticipated a 25 bps repo rate cut in the December 2025 Monetary Policy, even as the Reserve Bank of India was widely expected to revise FY26 GDP growth higher and retail inflation forecasts lower. All three expectations materialised. Alongside the rate cut, the RBI announced open market purchases of government bonds and swap transactions, signalling a clear easing bias.
The key driver behind the policy shift, despite strong macro fundamentals, is the sustained downside surprise in inflation prints. With headline inflation consistently undershooting projections, the RBI has been compelled to recalibrate its inflation trajectory downward. This has opened space for policy accommodation without compromising macro stability.
A softer monetary stance and liquidity infusion could exert pressure on the rupee. However, the planned ₹1.5 trillion of bond purchases — including ₹0.5 trillion through swaps — enhances the RBI’s ability to intervene in currency markets through dollar sales without tightening domestic liquidity conditions.
In the near term, the RBI is expected to adopt a wait-and-watch approach. Yet, if inflation continues to trend below the projected path, the possibility of another 25 bps cut cannot be dismissed. Overall, the policy actions are constructive for both the equity and bond markets, reinforcing a benign interest-rate environment and supporting valuations.
December 5, 2025 11:24
RBI MPC Live: RBI announces liquidity enhancement measures; to conduct OMO purchase and USD/INR buy-sell swap
RBI announces liquidity enhancement measures; to conduct OMO purchase and USD/INR buy-sell swap
The RBI has announced that it will conduct OMO purchase auctions of G-Secs for ₹1 lakh crore in two tranches of ₹50,000 crore each to be held on December 11, 2025, and December 18, 2025
December 5, 2025 11:05
RBI MPC Live Updates: Churchil Bhatt, Executive Vice President – Investment, Kotak Mahindra Life Insurance Company
“The RBI cut the repo rate by 25 basis points in a unanimous decision, keeping its stance neutral but signaling a dovish bias given the growth-related uncertainty. The central bank revised its FY26 CPI forecast sharply lower to 2% and expects inflation in the first half of next year to remain at or just under 4%. To support growth and ensure liquidity, RBI announced ₹1 lakh crore of bond purchases and a $5 billion, three-year FX swap. Together, these measures are growth-supportive, and the evolving growth-inflation mix keep the door open for one more rate cut. Financial conditions should therefore supportive for rate transmission and for bond market sentiment.”
December 5, 2025 11:04
RBI MPC Live: Reactions from Anitha Rangan, Chief Economist, RBL Bank
Rate cut by 25 bp, Neutral stance, OMO and FX swap
Announcing a rate cut of 25 bp and maintaining a neutral stance along with 1 lac crore OMO, RBI is perhaps once again front loading its rate cut. With inflation revised downwards and growth outlook revised upwards, RBI indicates that inflation is giving headroom to support growth.
Announcing OMO perhaps suggests that RBI is cognizant of G-sec yields. In addition 3year FX swap suggests that RBI is aware of the FX risks. They have done swaps in the past and there is possibility of more support if required.
Nevertheless, a neutral stance suggests that RBI is unlikely to acknowledge rate cuts once again in the near future, but the support from OMOs and FX could continue.
Overall dovish policy for now, with RBI watching all parameters. While the repo cut does put pressure on the currency front, FX swap suggest that RBI is cognizant of currency pressures.
December 5, 2025 11:04
RBI MPC Live Updates: Sonam Srivastava, Founder and Fund Manager at Wright Research PMS on the RBI MPC meeting
The RBI’s 25 basis point rate cut marks a clear shift in this policy cycle and reflects confidence that inflation is now comfortably within the target band. The tone remains measured because the Committee wants to ensure this disinflation trend is durable, but the decision shows alignment between easing price pressures and a growth backdrop that continues to hold firm.
Markets are likely to read this as supportive rather than surprising since expectations for a cut had already strengthened after the recent CPI prints softened. Bond yields should move lower with the 10-year moving toward the 6.8 to 7 percent range as investors price in the start of an easing path. Rate sensitives like banks, autos, and real estate can see near term strength, while equities more broadly should respond positively but remain stock-selective given widening earnings dispersion. The policy message is continuity and steady normalization, and markets will trade around that clarity.
December 5, 2025 11:03
RBI MPC Live: Reactions from Vijay Gour Research Analyst Mirae Asset ShareKhan
The Reserve Bank of India (RBI), through a unanimous decision, reduced the repo rate by 25 basis points (bps) while retaining a neutral stance. This policy shift was coupled with updated projections for FY26, including an increase in the Real GDP growth forecast to 7.3% for FY26 from 6.8% and a revised CPI inflation estimates of 2.0 from 2.6% for FY26. Furthermore, to manage financial conditions, the RBI announced an Open Market Operations (OMO) purchase of ₹1.0 lakh crore in December to inject liquidity, alongside a plan to purchase $5 billion USD over three years to stabilize the rupee, ultimately benefiting credit-sensitive sectors like NBFCs, SFBs, MFIs, auto, real estate and gold financiers. However, Banks will see pressure on their NIMs in the short term.
December 5, 2025 11:03
RBI MPC Live Updates: Quote by Vishal Goenka, Co-Founder of IndiaBonds.com
“Given the recent inflation prints and the lack of transmission of lower interest rates in the banking sector, the RBI repo rate cut by 25bps is timely. Interestingly, the forward expectations of inflation have come much lower, opening the door for another rate cut if required before the end of the financial year. The idea is to make funding cheaper for governments and corporates, and the Rs. 1 lakh crore OMO purchases announcement should assist in boosting liquidity and flattening the yield curve. Following this, investors should look to lock in current high rates from corporates in the 2-3y segment and complement this by buying long end government bonds for potential gains.”
December 5, 2025 10:55
RBI MPC Meet Live: Reactions from Sujan Hajra, Chief Economist & Executive Director, Anand Rathi Group
Growth beats, inflation retreats. RBI blinks
We had anticipated a 25-bps repo rate cut in the December 2025 Monetary Policy, even as the Reserve Bank of India was widely expected to revise FY26 GDP growth higher and retail inflation forecasts lower. All three expectations materialised. Alongside the rate cut, the RBI announced open market purchases of government bonds and swap transactions, signalling a clear easing bias. The key driver behind the policy shift, despite strong macro fundamentals, is the sustained downside surprise in inflation prints. With headline inflation consistently undershooting projections, the RBI has been compelled to recalibrate its inflation trajectory downward. This has opened space for policy accommodation without compromising macro stability. A softer monetary stance and liquidity infusion could exert pressure on the rupee. However, the planned ₹1.5 trillion of bond purchases — including ₹0.5 trillion through swaps — enhances the RBI’s ability to intervene in currency markets through dollar sales without tightening domestic liquidity conditions.
In the near term, the RBI is expected to adopt a wait-and-watch approach. Yet, if inflation continues to trend below the projected path, the possibility of another 25 bps cut cannot be dismissed. Overall, the policy actions are constructive for both the equity and bond markets, reinforcing a benign interest-rate environment and supporting valuations.
December 5, 2025 10:55
RBI MPC Live Updates: Reactions from Anuj Puri, Chairman – ANAROCK Group
The RBI’s decision to cut the repo rate by 25 bps is a distinct positive for the Indian real estate sector as we close 2025. Coming on the back of earlier easing cycles this year, this move further sweetens the value proposition for homebuyers, particularly in the affordable and mid-income segments which are highly sensitive to interest rate fluctuations.
With average housing prices across the top 7 cities having risen by notable double-digits (approx. 10%) in 2025 as per ANAROCK Research, this rate cut provides a critical cushion to affordability, potentially bringing home loan interest rates to more attractive levels. This can encourage aspiring homebuyers who had paused their decisions due to price hikes to finally take the plunge. The rate cut is a distinct sentiment multiplier for year-end sales.
December 5, 2025 10:54
RBI MPC Live Updates: Garima Kapoor, Deputy Head of Research & Economist at Elara Capital on the RBI Monetary Policy
As expected, and staying committed to its mandate of inflation targeting central bank, RBI’s MPC cut policy repo rate by 25 bps via a unanimous vote. We believe that there would be scope for another 25 bps cut this cycle, as inflation is expected to remain benign and despite high real GDP print there are no signs of overheating in the economy. The all-time low print of inflation ex gold, silver, food and petroleum products ( ex of covid period) confirms the same.
December 5, 2025 10:54
RBI MPC Reactions Live Updates: MPC QUOTE BY JLL
The RBI’s decision to cut the repo rate by 25 bps is a powerful, proactive signal that strategically leverages India’s macroeconomic strength – a robust 8.2% Q2 GDP expansion alongside record-low headline inflation. This is not a reactive measure to a slowdown, but a confident and forward-looking deployment of monetary space to deliver a structural stimulus, ensuring the nation’s growth engine becomes more inclusive.
For the residential sector, this is a direct boost to affordability which has been a growing concern amid rising property prices. We have been observing price resistance in the affordable and mid-segment housing categories, with our estimates projecting residential sales in 2025 to be 8-9% down from last year’s robust 300,000+ units (in the top seven markets of India). Given the high penetration of external benchmark-linked loans, the transmission to homebuyers is expected to be quick, providing tangible EMI relief that directly addresses this affordability challenge. This move is the catalyst needed to revive purchasing power and activate the crucial segment of first-time affordable and mid-market homebuyers who have been waiting on the sidelines, transforming fence-sitters into active buyers. We anticipate this will not only invigorate demand in the top metro areas but also significantly boost the burgeoning housing markets in Tier 2 and Tier 3 cities.
For developers, this final easing bullet significantly lowers the cost of capital, encouraging accelerated execution of planned inventory, particularly in the affordable housing segment. This ensures that 2026 kicks off with renewed, broad-based residential momentum. On the commercial front, the lower cost of capital for developers encourages faster project completions and new launches. This aligns perfectly with the unabated expansion of Global Capability Centres (GCCs) and the government’s ‘Make in India’ initiative, ensuring supply can meet the high-velocity demand. Ultimately, this move underwrites a confidence-driven surge in real estate activity and enhances the long-term investment potential of the asset class for both domestic and global players.
Dr Samantak Das, Chief Economist and Head of Reserach and REIS, India , JLL
December 5, 2025 10:24
RBI Monetary Policy Meet Live Updates: Despite unfavouable and challenging external environment the growth has been strong, says RBI Guv
December 5, 2025 10:24
RBI Monetary Policy Meet Live Updates: RBI Governor says 2-month campaign to resolve pending cases with RBI ombudsman
December 5, 2025 10:24
RBI Monetary Policy Meet Live Updates: Pendency with RBI ombudsmen has increased, Banks must improve customer service and reduce grievances
December 5, 2025 10:24
RBI MPC Announcements Live: RBI Governor says all applications of RBI on portal
December 5, 2025 10:22
RBI MPC Announcements Live: Total flow of resources to commercial sector at ₹20.1 lakh crore in FY26 so far
December 5, 2025 10:22
Bank credit has seen an uptick of 11% according to latest data
December 5, 2025 10:21
RBI MPC Announcements Live: Outstanding credit from bank and non-bank sources has increased 13.1%
December 5, 2025 10:21
RBI MPC Announcements Live: The total flow of resources to the commercial sector has been bolstered by non-bank sources, RBI Guv says
December 5, 2025 10:21
RBI MPC Announcements Live: NBFC financials are sound, says RBI Guv
December 5, 2025 10:20
RBI MPC Announcements Live: It is quiet possible that on the one had we inject liquidity via OMO and at the same time withdraw transient liquidity via VRRR auctions, says RBI Guv
December 5, 2025 10:19
RBI MPC Meet Live Updates: We are hopeful that OMO and Buy/Sell Swap will ensure adequate liqudity and monetary transmission, says RBI Guv
December 5, 2025 10:18
RBI MPC Meet Live Updates: We'll conduct OMO purchase of Rs 1 lakh cr this month, details to be notified separately, RBI Guv says
December 5, 2025 10:17
RBI MPC Meet Live Updates: We are committed to provide sufficient durable liquidity to the banking system, says RBI Guv
December 5, 2025 10:17
RBI MPC Dec 2025 Live Updates: G-Sec yields have been rangebound since October MPC
December 5, 2025 10:17
RBI MPC Dec 2025 Live Updates: System liquidity stood at an avg surplus of Rs 1.5 lakh crore since last MPC
December 5, 2025 10:16
RBI MPC Dec 2025 Live Updates: Overall, India's external sector remains resilient, says RBI Guv
December 5, 2025 10:16
RBI MPC Dec 2025 Live Updates: RBI Governor says forex reserves healthy at $686 bn, enough to cover 11 months of imports
December 5, 2025 10:16
RBI MPC Dec 2025 Live Updates: Gross and net FDI increase, flows under ECB and NRI moderated as compared to last year
December 5, 2025 10:15
RBI MPC Dec 2025 Live Updates: Healthy receipts likely to keep CAD modest
December 5, 2025 10:15
RBI MPC Dec 2025 Live Updates: CPI for Q1 of FY27 at 3.9%, Q2 at 4%
December 5, 2025 10:15
RBI MPC Live Updates: Current account deficit at 1.3%, says RBI Guv
December 5, 2025 10:14
RBI MPC Live Updates: CPI inflation for FY26 projected at 2%, CPI for Q3 of FY26 at 0.6%, Q4 at 2.9%
December 5, 2025 10:14
RBI MPC Live Updates: Inflation is likely to be softer than what was projected in October
December 5, 2025 10:14
RBI MPC Live Updates: Commodity prices to moderate with few exceptions
December 5, 2025 10:14
RBI MPC Live Updates: Inflation Outlook for food supply improved, Overall inflaiton is expected to softer than what was projected
December 5, 2025 10:13
RBI MPC Announcements Live: Decline in inflation has become more generalised
December 5, 2025 10:13
RBI MPC Announcements Live: Projected GDP Growth rate for Q1 of FY27 at 6.7%, Q2 at 6.8%
December 5, 2025 10:13
RBI MPC Announcements Live: Core CPI inflation largely contained in September and October
December 5, 2025 10:12
RBI MPC Announcements Live: Projected Q3 GDP at 7%, Q4 6.5%, says RBI Guv
December 5, 2025 10:12
RBI MPC Announcements Live: RBI Governor says real GDP growth 7.3%; up 0.5% for the full fiscal year
December 5, 2025 10:10
RBI MPC Announcements Live: Services exports are likely to remain strong, while merchandise exports face headwinds, says RBI Guv
December 5, 2025 10:10
RBI MPC Announcements Live: GST rationalisation, healthy corporate balance sheet to support growth: RBI Guv
December 5, 2025 10:10
RBI Monetary Policy Meet Live Updates: Manufacturing activity continues to improve and services holding steady, says RBI Guv
December 5, 2025 10:09
RBI Monetary Policy Meet Live Updates: Urban demand recovering and merchandise exports subdued, says RBI Guv
December 5, 2025 10:09
RBI Monetary Policy Meet Live Updates: High frequency indicators suggest domestic activity is holding up in Q3
December 5, 2025 10:08
RBI MPC Dec 2025 Live Updates: Economic activity in H1 benefits from income tax, GST rationalisation, frontloading of govt capex
December 5, 2025 10:07
RBI MPC Dec 2025 Live Updates: Growth to soften slightly, RBI Guv says
December 5, 2025 10:07
RBI MPC Dec 2025 Live Updates: RBI Governor: Headline and core inflation to remain below 4% mark
December 5, 2025 10:07
RBI MPC Dec 2025 Live Updates: Headline and core inflaiton are expected to be at or below the 4% level in the first half of next year
December 5, 2025 10:07
RBI MPC Dec 2025 Live Updates: RBI Governor: MPC noted that headline eased significantly
December 5, 2025 10:06
RBI MPC Dec 2025 Live Updates: RBI to conduct 3-year dollar-rupee swap worth $5 billion to inject liquidity
December 5, 2025 10:06
RBI MPC Dec 2025 Live Updates: RBI decided to conduct OMO purchase of Rs 1 lakh cr
December 5, 2025 10:05
RBI MPC Live Updates: Repo rate cut by 25 bps to 5.25% with immediate effect. The decision was unanimous and neutral stance to continue.
December 5, 2025 10:05
RBI Governor: mpc 3,4,5 of Dec
December 5, 2025 10:04
RBI cuts repo rate by 25 bps
December 5, 2025 10:04
RBI Governor: AI valuation concerns globally
December 5, 2025 10:04
RBI Governor: globally growth has been strong
December 5, 2025 10:03
This is a rare goldilocks period, Globally growth has been relatively strong, contrary to expectations
December 5, 2025 10:03
RBI Governor: Real GDP growth accelerated to 8.2 per cent in Q2, buoyed by consumption spending
December 5, 2025 10:03
RBI Governor: inflation reached lower tolerance of 2 pc
December 5, 2025 10:02
Average headline inflation at 1.7% in q2 reached the lower tolerance level
December 5, 2025 10:02
RBI Governor: Indian economy has witnessed disinflation
December 5, 2025 10:02
The Indian economy has witnessed rapid inflation since the Oct policy
December 5, 2025 10:02
We approach the new year with hope, vigour, determination to support the economy and support progress, says RBI Governor
December 5, 2025 10:02
RBI Governor: regulatory was refined
December 5, 2025 10:01
Economy witnessed robust growth and benign inflation, says RBI Guv
December 5, 2025 10:01
RBI Guv says 2025 has been eventful and challenging
December 5, 2025 09:55
RBI MPC Live Updates: Close call but RBI MPC could cut repo by 25 bps, economists say
Close call but RBI MPC could cut repo by 25 bps, economists say
The single digit nominal GDP growth continues to signal tepid underlying activity; despite the high real GDP growth, the bank retains its expectations of 25 bps repo cut on account of inflation trajectory being benign
December 5, 2025 09:51
RBI MPC Live Updates: India bonds inch up as traders eye liquidity support in RBI policy
Indian government bonds rose slightly at the open on Friday, with some risk-takers building positions on hopes of liquidity support from the central bank as it announces its interest rate verdict later in the day.
The benchmark 10-year yield was at 6.5181% as of 9:35 a.m. IST. It ended at 6.5267% on Thursday. The 6.48% 2035 bond yield was at 6.5007%, compared with its previous close of 6.5132%. (Reuters)
December 5, 2025 09:45
RBI MPC Live Updates: 9 out of 15 economists polled by businessline expect 0.25% rate cut
The RBI Monetary policy committee (MPC) will likely reduce benchmark policy repo rate by 25 basis points (bps) to 5.25 per cent on December 5, on account of benign inflation and expected slowdown in GDP growth in H2FY26, nine out of 15 economists polled by businessline said.
December 5, 2025 09:37
RBI MPC Live Updates: Fitch says gap between nominal and real GDP narrowed further
According to Fitch, GDP growth accelerated further to 8.2 per cent in Q2 from 7.8 per cent during Q1. The gap between nominal and real GDP narrowed further, with the GDP deflator just 0.5 per cent higher compared with the year earlier.
Fitch ups India’s growth forecast to 7.4%
Fitch raises India's growth forecast to 7.4%, driven by private consumer spending and positive economic reforms.
December 5, 2025 09:35
RBI MPC Dec 2025 Live Updates: Fitch expects rate cut as it ups India’s growth forecast to 7.4%
With July-September quarter (Q2 of FY26) beating all expectations, Fitch Ratings on Thursday upped India’s growth forecast by 50 basis points (bps) to 7.4 per cent. It expects reduction in policy interest rate by the Monetary Policy Committee (MPC) on December 5.
December 5, 2025 09:32
RBI MPC Live Updates: Flat opening seen ahead of RBI meet outcome
Domestic markets are likely to open on a flat note, as the focus will be on the RBI monetary policy meet outcome. Analysts expect RBI to maintain the status quo and the focus will be on its pronouncements, especially on rupee movement and India’s growth outlook.
According to JM Financial, the RBI has a tough task at hand focusing on its dual mandate of supporting growth while maintaining price stability. Markets are divided on the RBI’s monetary policy expectation in December, specifically after the robust GDP print that followed the series low inflation. In addition to being forward looking, the RBI’s policy decision should also ensure an effective transmission in yields.
Flat opening seen ahead of RBI meet outcome
Domestic markets expected to open flat as investors await RBI's monetary policy outcome amid mixed global sentiment and FPI outflows.
December 5, 2025 09:20
RBI MPC Live updates: Bank of Baroda expects no change in interest rates or the neutral stance
A report by Bank of Baroda also expects interest rates to remain unchanged. It added that the central bank is likely to retain its current neutral stance as well.
December 5, 2025 09:11
RBI MPC December 2025 Live: In October, the retail inflation dropped to multi-year low of 0.25 per cent in October, lowest in the current series
Retail inflation dips to multi-year low of 0.25% in October
Retail inflation based on Consumer Price Index (CPI) in October dipped to 0.25 per cent, government reported on Wednesday. This is lowest print in the current series i.e., base year 2012.
December 5, 2025 09:10
RBI MPC Live Updates: Inflation Target 4%
The committee is responsible for deciding on key monetary policy tools, such as the repo rate, to maintain inflation at a 4% target (within a 2-6% band) while supporting economic growth.
December 5, 2025 09:09
RBI MPC Live Updates: RBI MPC members who would deliberate on the monetary policy and repo rate
The Reserve Bank of India’s (RBI) Monetary Policy Committee (MPC) consists of six members: three official RBI representatives (including the Governor as Chairperson) and three external members appointed by the Government of India.
The members of the current MPC are as follows:
Sanjay MalhotraPoonam GuptaIndranil BhattacharyyaSaugata BhattacharyaRam SinghNagesh Kumar
December 5, 2025 09:03
RBI MPC Live Updates: Markets are divided on possibility of rate cuts
The financial markets remain divided on expectations from the MPC, with economists largely anticipating a pause in rate action, while some industry voices believe the time is right for a rate cut.
December 5, 2025 08:58
RBI MPC Live Updates: RBI Governor to announce repo rate today; economists expect pause, industry eyes cut
The Reserve Bank of India (RBI) Governor Sanjay Malhotra will announce the policy rate today at 10 am as the three-day Monetary Policy Committee (MPC) meeting concludes on Friday.
RBI Governor to announce repo rate today; economists expect pause, industry eyes cut
RBI Governor to announce policy rate today; economists expect a pause while industry leaders advocate for a potential cut.
December 5, 2025 08:33
RBI MPC: RBI set to announce policy decision as markets eye potential rate cut
The Reserve Bank of India (RBI) will announce its monetary policy decision on Friday morning, following a three-day meeting of the Monetary Policy Committee that began on Wednesday. RBI Governor Sanjay Malhotra will address the media at noon, with the announcement live streamed on the central bank’s YouTube channel and website.
RBI set to announce policy decision as markets eye potential rate cut
RBI's upcoming policy decision may signal a repo rate cut as markets react to easing inflation and global trends.
December 5, 2025 07:57
RBI MPC meet: Interest rates do not seem to be the main driving force of the aggregate saving rate: MPC member
The likely adverse impact on bank deposits and moderation in household savings should not be the reason for not going for a further rate cut, according to monetary policy committee (MPC) member Ram Singh.
Interest rates do not seem to be the main driving force of the aggregate saving rate: MPC member
The likely adverse impact on bank deposits and moderation in household savings should not be the reason for not going for a further rate cut, according to monetary policy committee (MPC) member Ram Singh
December 5, 2025 07:55
RBI MPC meet: SBI economists’ believe December rate cut is a close call and not a given
The higher growth numbers for Q2 (July-September) and the October inflation print will pose a serious dilemma for the RBI for a rate action in December, according to State Bank of India’s economic research department (ERD).
SBI economists’ believe December rate cut is a close call and not a given
SBI economists suggest a December rate cut is uncertain, influenced by Q2 growth and October inflation challenges for RBI.
December 5, 2025 07:46
RBI MPC meet: 25bps repo rate cut likely in December MPC meet, says Morgan Stanley
The Reserve Bank of India (RBI) is expected to reduce the repo rate by 25 basis points in its upcoming December 2025 policy meeting, according to a recent report released by Morgan Stanley.
25bps repo rate cut likely in December MPC meet, says Morgan Stanley
Morgan Stanley predicts a 25bps repo rate cut by RBI in December 2025, influenced by CPI inflation trends and economic growth.
December 5, 2025 07:34
India's bond markets after RBI’s Dec 5 repo rate decision: Five likely scenarios
India’s stronger-than-expected GDP growth, at a time when retail inflation is at a record low, jolted the bond market’s view on where interest rates are headed and set up the prospect of sharp moves when the central bank delivers its decision on Friday. Before the economic growth data release, a Reuters poll had forecast a 25-basis-point cut in the policy repo rate to 5.25 per cent.
India's bond markets after RBI’s Dec 5 repo rate decision: Five likely scenarios
Explore five potential scenarios for India's bond markets following the RBI's December 5 interest rate decision and expected market reactions.
Published on December 5, 2025