RBI MPC December Meet 2025: The Reserve Bank of India Governor Sanjay Malhotra-led Monetary Policy Committee (MPC) will announce its decision on the repo rate today, December 05. The MPC meeting came on the heels of strong economic growth for the second quarter of the current fiscal year.
Markets remain split over whether the central bank will resume rate cuts or extend its pause, especially after the economy posted an unexpectedly strong expansion.
India’s GDP grew 8.2 per cent in the September quarter, beating forecasts and strengthening the case for maintaining policy support for growth. However, inflation has remained exceptionally soft, giving room to cut. The Consumer Price Index (CPI) print has stayed below the government’s mandated lower
tolerance band of 2 per cent for two consecutive months.
In 2025, RBI cut down almost 100 bps in the repo rate from 6.50 per cent to 5.50 per cent before hitting the pause button. In the last two MPC meeting of August and September, RBI kept the repo rate unchanged at 5.50 per cent.
Several economists believe the central bank may choose caution this week, despite disinflationary trends. They argue that the current policy rate already delivers a healthy positive real rate, given expectations that inflation will settle above 4 per cent in the coming fiscal year.
Madan Sabnavis, chief economist at Bank of Baroda, said the decision is “a close call”, but added: “Under these conditions, we do not think that there should be any change in the policy rate.”
Others see scope for one more cut, pointing to inflation running well below target and lingering risks to growth. A report from HDFC Bank said, “Given the lingering risks on growth (in H2) and inflation expected to remain well below 4 per cent until Q3 FY27, we see that there may still be a chance of another 25bps rate cut at the upcoming policy.”
RBI MPC December 2025 Announcement: Date And Time
The RBI governor will announce the upcoming repo rate decision on the last day of the 3-day meeting on Friday at 10 am.
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