RBI Monetary Policy 2025 LIVE: Sanjay Malhotra-led MPC Cuts Repo Rate by 25 bps to 5.25%; Raises FY26 GDP Growth to 7.3%

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 MPC meeting held from December 3 to December 5. The Sanjay Malhotra-led Monetary Policy Committee (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 repo rate today update confirms the first reduction after the October pause, marking a shift as the central bank responds to evolving macroeconomic conditions.

RBI Policy LIVE: GDP Growth Estimates Revised Upward

In a strong signal of India’s economic momentum, the RBI Monetary Policy 2025 announcement 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 optimistic outlook reflects strong domestic demand, policy support, and stable macro indicators.

Backdrop of the RBI Meeting Today

The RBI 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 rate cut.

RBI Policy Expectations: Analysts Were Divided

Ahead of the decision, markets were buzzing with RBI 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 MPC meeting.

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 rate cut news 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 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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