RBI MPC Meeting 2025 Live Updates: RBI Governor Sanjay Malhotra Cuts Repo Rate By 25 Bps To 5.25%

“On the supply side, agricultural growth is supported by healthy Kharif crop production, higher reservoir levels, and better rabi crop sowing. Manufacturing activity continues to improve while the services sector is maintaining a steady pace,” the governor said.

Malhotra also said, “Rural demand continues to be robust. urban demand is recovering steadily. Investment activity remains healthy with private investment gaining steam on the back of expansion, in non food, bank credit, and high capacity utilisation, which is of the order of about 35%.”

In fact, the underlying inflation pressures are even lower as the impact of increased prices of precious metals in this inflation number is about 50 basis points. Growth, while remaining resilient, is expected to soften some blood.
– Sanjay Malhotra, RBI Governor

“Boiled by strong spending during the festive season, which was further facilitated by the rationalisation of the GSD race. Inflation at a benign 2.2% and growth at 8% for the half year of, for the first half of this year, presents a rare Goldilocks period,” said the Guv.

The RBI Governor Sanjay Malhotra highlights the outcomes of the MPC meeting.

Against the RBI projection of 6.8% growth in July-September, the Indian economy grew 8.2%, the fastest in the previous six quarters. Nominal GDP grew at 8.7% in the second quarter, versus 8.8% the year before.

In October, RBI retained the projection for real GDP growth for 2025-26 at 6.8%.
Q1: 7.8%
Q2: 7%
Q3: 6.4%
Q4: 6.2%
Q1 FY27: 6.4%

“We expect the Monetary Policy Committee to keep the repo rate unchanged, despite inflation showing signs of relief. For homebuyers, this means EMIs may likely rise in the near future, offering stability over the next year. But doesn’t necessarily mean relief, considering many borrowers who took floating-rate loans in the last 18-24 months are still coping with higher repayment commitments.

For lenders, the rate pause could reinforce a cautious ‘wait-and-watch’ period. They will continue prioritising strong, salaried borrowers as they expand into tier-2 and tier-3 markets. The next big catalyst will come from policy clarity and structural reforms.

A fundamental reform worth observing is the early conversation around GST2.0. A sharper, more efficient regime could ease the tax load on under-construction homes, streamline input tax credits and reduce costs for developers. If executed well, it could soften property prices and encourage competitive home loan rates, especially in the affordable housing segment. Doing so may create fresh tailwinds for lenders aiming to scale in this category.

These developments are likely to influence the Union Budget 2026, which is expected to focus on housing-led growth, urban infrastructure and credit expansion. Today’s stable monetary environment gives policymakers the room to craft a strong, multi-year housing push that improves demand, supports construction jobs and positions housing finance as a key driver of India’s economic growth story.”

– Atul Monga, CEO& Co-Founder, BASIC Home Loan

The Reserve Bank of India’s (RBI) decision to keep the repo rate steady at 5.50 percent provides essential financial stability for the pharmaceutical industry. Lower borrowing costs enable companies to invest more in research and development, strengthen supply chains, and enhance production capabilities, helping the sector meet growing healthcare demands. – Shashi Bhushan, Chairman of Board, Stellar Innovations

With expectations rising for another Reserve Bank of India (RBI) rate cut in the December policy review, banks could face renewed pressure on their net interest margins (NIMs), which were earlier expected to stabilise in the third quarter. However, experts believe the overall impact on the sector will remain limited, as lending-rate pressures are being offset to some extent by the significant decline in deposit rates seen so far.

RBI MPC Meeting 2025 Live Updates: RBI has forecast 2.6% inflation for FY26, 4% in the fourth quarter of FY26 and 4.5% in the first quarter of FY27. The central bank revised its full year FY26 inflation estimate downwards to 2.6%, from 4.2% in February.

RBI MPC Meeting 2025 Live Updates: The announcement will be streamed on RBI’s official YouTube channel. Viewers can tune in via the central bank’s YouTube channel, official X account, and the RBI website. Moreover, you can also see live updates of RBI’s MPC announcement in the live blog on News18 platform.

RBI MPC Meeting Today Live Updates: As the Monetary Policy Committee (MPC) of the Reserve Bank of India (RBI) is set to commence its bi-monthly meeting later today (December 3), the sharp depreciation of the Indian rupee against the US dollar is likely to remain a concern , currency experts said. Experts also fear that the central bank may allow the currency to depreciate with limited intervention. “The RBI, it seems, is adopting a more soft touch approach to intervention, given that it is already considerably short in forward contracts, including NDF (Non-Deliverable Forward) . It may therefore want to use its intervention power judiciously,” said Abhishek Goenka, Founder & CEO of India Forex Asset Management-IFA Global.

RBI MPC Meeting Today Live Updates: The policy outcome is important, but the real hinge is how the RBI frames liquidity. Traders want assurance that the central bank won’t let overnight rates stay elevated for long. A clear signal could reset yields, support duration strategies and stabilise short-term markets.

RBI MPC Meeting Today Live Updates: Saugata Bhattacharya, economist

Ram Singh, director, Delhi School of Economics

Nagesh Kumar, director & CEO, Institute for Studies in Industrial Development (ISID)

RBI MPC Meeting Today Live Updates:  Indranil Bhattacharyya, executive director in charge of monetary policy

Poonam Gupta, deputy governor in charge of monetary policy

RBI MPC Meeting Today Live Updates: The MPC comprises six members, with three representing the RBI and three appointed by the government. RBI Governor Sanjay Malhotra serves as the ex officio chairperson of the committee.

RBI MPC Meeting Today Live Updates: With FX intervention tightening liquidity, markets are watching to see whether the RBI acknowledges the strain and signals an Open Market Operation (OMO) purchase. A December OMO would inject durable liquidity and soften short-end yields. Traders now view an OMO cue as more impactful than the actual rate decision.

RBI MPC Meeting Today Live Updates: Quantum Mutual Fund’s Sneha Pandey argues the growth backdrop remains robust even if momentum cools. She calls 7 percent real GDP ‘huge’ in a global slowdown and says nominal GDP may undershoot the government’s 10.1 percent projection, ending closer to 9–9.5 percent because inflation remains subdued.

Quantum Mutual Fund’s Sneha Pandey says the RBI should avoid sounding hawkish even if it decides to hold rates. With base effects fading and inflation expected to firm up later in the year, she argues this is the right window to front-load support. A harsh tone, she cautions, could undermine any easing efforts.

RBI MPC Meeting Today Live Updates: The Reserve Bank of India’s governor Sanjay Malhotra is scheduled to begin his address at 10 AM, where he will announce the decisions taken by the Monetary Policy Committee over the last few days.

RBI MPC Meeting Today Live Updates: As we head into the last Monetary Policy Committee meeting of 2025, here’s a quick look at how the RBI steered the economy through the year.

• Three repo rate cuts totalling 100 basis points, rolled out across February, April and August as CPI inflation eased
  Disinflation trend maintained: Retail inflation steadily declined and moved below the lower tolerance band in the second half of the year
• Policy focus shifted towards growth support signalling confidence in macro fundamentals as GDP continued to surprise on the upside
• Upward revision in growth forecasts: In October, RBI raised India’s GDP outlook for FY26 from 6.5% to 6.8%
• Liquidity management took centre stage with calibrated interventions to protect financial stability during global volatility

RBI MPC Meeting Today Live Updates: RBI kept the repo rate unchanged at 5.50 per cent in the previous two MPC meetings of August and September, respectively. Earlier, the Central bank cumulatively slashed the repo rate by 100 bps throughout 2025 in the past four MPC meetings, 25 bps twice and 50 bps once. Following that, the bank paused the rate cut.

RBI MPC Meeting Today Live Updates: Retail inflation, measured by the Consumer Price Index (CPI), has stayed below the government’s lower tolerance band of 2% for two straight months. In October, CPI inflation dropped to a multi-decade low of 0.25%, driven by GST rate cuts, a favourable base effect, and softer prices of food items such as fruits and vegetables.

India’s GDP grew 8.2 per cent in the September quarter, beating forecasts and strengthening arguments for maintaining policy support.

RBI MPC Meeting Today Live Updates: Experts remain divided on whether the central bank will resume rate cuts or extend its pause, especially after a stronger-than-expected economic performance last quarter. While a majority still expect an interest rate reduction, some experts believe the central bank is likely to keep the rate unchanged in the backdrop of better-than-expected GDP growth of 8.2 per cent in the second quarter.