RBI Monetary Policy 2025 LIVE: The Reserve Bank of India (RBI) will announce its monetary policy decision today, 5

December 2025, Friday. The RBI Governor Sanjay Malhotra-headed Monetary Policy Committee (MPC) held its fifth bi-monthly

meeting for FY26 from December 3 to December 5, and the repo rate decision will be announced today.

The MPC convened its policy meeting against the backdrop of robust economic growth, historically low inflation, and the

Indian rupee hovering near record low levels of near 90 per US dollar.

RBI Policy Expectations

Analysts are divided on whether the RBI’s MPC will reduce the repo rate or not. A Mint poll of 13 economists earlier

this week showed nine expecting a pause, while four anticipated a 25-basis points (bps) cut to 5.25%.

Policymakers face a tough dilemma as India’s economic growth has been propped up by policy support, with the GDP at a

six-quarter high, and retail inflation near historic lows. Meanwhile, rupee depreciation might become the decisive

policy motivator, with the INR trading near an all-time low. Analysts believe a textbook approach would suggest a pause,

but the RBI must remain forward-looking.

However, certain economists feel that the clear near-term inflation visibility strengthens the case for a December cut,

even with a possible split MPC.

Earlier this year, the RBI lowered the repo rate by 100 bps in three meetings, beginning in February. In its October

policy, the MPC kept the repo rate unchanged at 5.50% and maintained the policy stance as ‘Neutral’. The RBI raised FY26

GDP growth estimates to 6.8% from 6.5% earlier, and also reduced FY26 CPI inflation forecast to 2.6% from 3.1% earlier.