RBI Monetary Policy 2025 LIVE: Repo Rate Cut, GDP Revision & Industry Reactions

RBI Policy 2025 LIVE Update:

The Reserve Bank of India (RBI) announced its latest RBI monetary policy decision today, 5 December 2025, after the conclusion of the RBI Monetary Policy Committee (MPC) meeting held from December 3 to December 5. The Sanjay Malhotra-led MPC has cut the repo rate by 25 basis points (bps), bringing it down to 5.25%, delivering a move widely tracked by analysts and investors across India.

This RBI monetary policy rate cut marks the first reduction after the October pause, reflecting the RBI’s response to evolving macroeconomic conditions.

RBI Monetary Policy 2025: GDP Growth Estimates Revised Upward

In a strong signal of India’s economic momentum, the latest monetary policy of RBI revealed a sharp upward revision in FY26 GDP growth estimates, now increased to 7.3% from 6.8% earlier.

Quarterly GDP Estimates (New vs. Old)

• Q3 FY26: Revised to 7% (from 6.4%)
• Q4 FY26: Revised to 6.5% (from 6.2%)
• Q1 FY27: Revised to 6.7% (from 6.4%)
• Q2 FY27: Projected at 6.8%

This positive outlook reflects strong domestic demand, policy support, and stable macro indicators.

Backdrop of the RBI Monetary Policy Today

The India RBI monetary policy meeting was conducted at a time when the Indian economy showcased:

• Robust GDP growth, touching a six-quarter high
• Retail inflation near historic lows
• Indian Rupee (INR) trading close to its all-time low around ₹90 per US dollar

The combination of low inflation, a weak rupee, and solid growth created a unique challenge for policymakers. The central bank had to balance growth support, currency stability, and inflation expectations before deciding the final RBI repo rate cut.

Industry & Trade Bodies Welcome RBI Monetary Policy Repo Rate Cut

Leading industry and trade organizations have welcomed the RBI monetary policy repo rate reduction:

• FICCI, EEPC India, All-India Association of Industries, and FIEO applauded the cut of 25 bps to 5.25%.
• Anant Goenka, President of FICCI, highlighted that this calibrated easing will stimulate credit offtake, reduce borrowing costs for industry and consumers, and reinforce current growth momentum.
• The Federation of Indian Export Organisations (FIEO) called it a timely and encouraging step to ease liquidity pressures and strengthen export competitiveness.
   

These reactions reinforce the positive impact of the RBI’s monetary policy rate cut on the Indian economy and exports.

RBI Monetary Policy Expectations: Analysts Were Divided

Ahead of the decision, markets were buzzing with RBI monetary policy news and varied expectations.

A Mint poll of 13 economists showed:

• 9 expecting no rate cut (pause)
• 4 expecting a 25 bps cut

Some analysts argued that a pause would be appropriate due to currency pressures, while others believed lower inflation visibility provided room for a rate cut. The final move reflects the RBI’s forward-looking stance despite a likely split vote within the RBI Monetary Policy Committee.

Earlier this year, the RBI had already cut rates by 100 bps across three meetings starting February. In October, the repo rate was kept unchanged at 5.50%, with a Neutral stance.

Why the RBI Cut Rates Today?

Key reasons behind the RBI monetary policy rate cut include:

• Stable and predictable inflation trajectory
• Need to support economic activity without overheating
• Improved visibility of near-term CPI trends
• Balancing rupee depreciation with growth considerations

The central bank also retained its focus on ensuring liquidity stability while supporting long-term macro fundamentals.

RBI Policy Date & Time Recap

• RBI monetary policy date: 5 December 2025
• RBI policy time: Decision announced in the morning post-MPC briefing
• Next MPC Meeting: As per the scheduled RBI calendar (updates soon)

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