RBI’s MPC Meeting Begins Amid Strong Growth, Low Inflation
The Reserve Bank of India (RBI) kicked off its three-day meeting of the Monetary Policy Committee (MPC) on December 3, 2025 at Mumbai. The panel will review recent economic data and announce its decisions on December 5 at 10 am.
What’s on the Table
The MPC will evaluate India’s recent economic performance: the economy posted a robust 8.2 % GDP growth in the July–September quarter, while retail inflation dropped sharply to a multi-year low of 0.25 % in October. These conditions present a complex backdrop for policy decisions.
Expectations and Scenarios
With inflation subdued but growth strong, analysts are divided. Some expect the RBI may cut the repo rate by 25 basis points — lowering it from 5.50 % to 5.25 % — to support demand and reduce borrowing costs. Others caution that strong growth argues for keeping the rate unchanged.
What It Means for Markets and Economy
A rate cut could ease loan rates and stimulate investment and consumption, offering relief to borrowers and companies. But if the RBI maintains the status quo, borrowing costs could remain stable, limiting immediate stimulus. Either way, the decision will shape credit flows, investment sentiment, and broader economic momentum.
