RBI Monetary Policy 2025 LIVE: The Reserve Bank of India (RBI) announced its monetary policy decision today, 5 December 2025, Friday. The RBI Governor Sanjay Malhotra-headed Monetary Policy Committee (MPC) held its fifth bi-monthly meeting for FY26 from December 3 to December 5, and the repo rate decision was announced today.
The MPC convened its policy meeting against the backdrop of robust economic growth, historically low inflation, and the Indian rupee hovering near record low levels of near 90 per US dollar.
The Reserve Bank of India’s six-member Monetary Policy Committee (MPC) unanimously voted to reduce repo rate by 25 bps to 5.25% from 5.50% earlier, and decided to continue with a ‘neutral’ stance.
RBI also raised FY26 GDP growth estimates to 7.3% from 6.8% earlier. It reduced FY26 CPI inflation forecast to 2% from 2.6% earlier. To inject liquidity into the banking system, the central bank decided to conduct OMO purchases of Government Securities amounting to ₹1 lakh crore, and also conduct a 3-year USD/INR buy-sell swaps of $5 billion in December.
In CY 2025, the RBI lowered the repo rate by a cumulative 125 bps.
RBI MPC Meeting 2025 Highlights: Here are key takeaways from December RBI monetary policy today:
1] Policy Measures:
2] GDP Growth Estimates
RBI raises FY26 GDP growth estimates to 7.3% from 6.8% earlier. Here are the quarterly estimates:
3] CPI Inflation Forecast
RBI cuts FY26 CPI inflation forecast to 2% from 2.6% earlier. Here are the quarterly estimates:
4] Liquidity Measures
5] The minutes of the MPC meeting will be published on December 19, 2025
6] The next RBI MPC meeting is scheduled from February 4 to 6, 2026
RBI Monetary Policy Meeting 2025 LIVE: With continuing global uncertainties and India’s reliance on domestic growth drivers, the growth orientation of monetary policy appears desirable. It will facilitate higher investment by the private sector. It would also reduce the cost of incremental borrowing by the government as long as a fiscal consolidation path is adhered to. With inflation keeping low, real interest rates would still remain reasonable and deposits should not be adversely affected. Thus, going forward, India will continue to rely on the role of its resilient domestic demand to support growth, said DK Srivastava, Chief Policy Advisor, EY India.
RBI MPC Meeting 2025 LIVE: Liquidity measures taken by RBI
RBI Monetary Policy Meeting 2025 LIVE: Macro highlights from RBI policy
RBI MPC Meeting 2025 LIVE: The rate cut rightly provides a further counter-cyclical push to consumption and growth. We anticipate inflation to remain below 4% up till the middle of the year which suggests that space for another rate cut remains in a situation where growth shows signs of faltering in the coming quarters. Alternatively, if the recent economic momentum continues combined with a favourable trade deal announcement, this could be the end of the rate cut cycle. We expect GDP growth at 7.3% in FY26 and 6.5% in FY27. Inflation is expected at 2% in FY26 and 4% in FY27, said Sakshi Gupta, Principal Economist, HDFC Bank.
The durable liquidity infusion through OMO purchases and buy/sell swap are likely to help aid greater transmission of this rate cut, offsetting the drag from its recent FX intervention, and ease some of the upward pressure in the bond market, she added.
RBI Monetary Policy Meeting 2025 LIVE: The continuation of a neutral policy stance indicates that future rate action will remain contingent on evolving macroeconomic conditions, although there is space for further easing. A durable liquidity infusion of nearly ₹1.5 trillion through bond purchases and FX swaps will support policy transmission via market rates, particularly in the sovereign bond market. Overall, easier financial conditions will help sustain growth momentum, even as external-sector headwinds persist, said Rajiv Anand, Managing Director & CEO, IndusInd Bank.
RBI MPC Meeting 2025 LIVE: Despite having surprisingly strong Q2FY26 GDP numbers, RBI realizes that the external environment is very challenging and, going forward, there are many factors that can derail the current growth momentum. Thus, the central bank has clearly indicated that stimulating economic growth, infusing more liquidity in the system, improving credit growth, and facilitating smooth transmission of rate cuts are the primary goals at this juncture, said Ajay Kejriwal, Executive Director of Choice International Ltd.
RBI Monetary Policy Meeting 2025 LIVE: Policy takeaways from today’s RBI policy
RBI MPC Meeting 2025 LIVE: We are focusing on creating a unique use case or unique use cases for CBDC. From that point of view focusing on programmability. There are many such programmable experiments and pilots, particularly in co-ordination with schemes of both the central government and state government as well as specific products of banks, they are under experimentation, and a large number of them, said RBI Deputy Governor T Rabi Sankar.
Going forward, we are hoping that some of them will settle down and become a common use, acceptable to an average user. That is largely the focus. The other focus is on getting over cross-border arrangements. Overall, it is proceeding as per expectations, he added.
RBI Monetary Policy Meeting 2025 LIVE: The retail CBDC is in good shape. There are, at this point in time, a little more than a little more than 80 lakh users of CBDC. The volume of transactions is approaching around 12 crore. The value is about ₹28,000 crore, said RBI Deputy Governor T Rabi Sankar.
RBI MPC Meeting 2025 LIVE: India;s benchmark 10-year bond yield dropped nearly 5 basis points after the RBI’s moves but rebounded thereafter to trade flat at 6.4841%.
RBI Monetary Policy Meeting 2025 LIVE: A 5% of depreciation (in rupee) leads to about 35 bps of inflation. On the other hand, it also helps exports and GDP growth by about 25 bps, said RBI Governor Sanjay Malhotra.
RBI Monetary Policy Meeting 2025 LIVE: If the inflation continues the way it is, we expect the policy repo rates to be low, and not high, RBI Governor Sanjay Malhotra.
RBI MPC Meeting 2025 LIVE: Our effort has always been to reduce any abnormal volatility in the forex market. We just let the rupee find its correct position, correct level, says RBI Governor Sanjay Malhotra.
RBI Monetary Policy Meeting 2025 LIVE: The key focus now is on monetary policy transmission. Since inflation is expected to remain benign, we want transmission to take effect in the real economy first. After that, we will review how inflation behaves, how the growth–inflation dynamics evolve, and take decisions policy by policy, said RBI Governor Sanjay Malhotra.
RBI MPC Meeting 2025 LIVE: Our dependence on the external sector is a small percent of GDP. We should get good capital flows going forward as a country. We do believe we have sufficient reserves. Current account is manageable, and we should get good capital flows going forward. Our external sector remains very strong, said RBI Governor Sanjay Malhotra.
RBI Monetary Policy Meeting 2025 LIVE: USD/INR swaps is a liquidity measure. It is not to support the rupee. We don’t target any price levels for rupee, said RBI Governor.
RBI MPC Meeting 2025 LIVE: Our stated policy on rupee is we allow markets to determine the prices. We don’t target any price levels or any bands. We believe markets are very efficient in the long run. Fluctuations, volatility does happen and can happen. We do believe we have sufficient reserves. The current account is manageable. We are in a very comfortable position, said RBI Governor Sanjay Malhotra.
RBI Monetary Policy Meeting 2025 LIVE: RBI Governor Sanjay Malhotra begins post-policy press conference
RBI MPC Meeting 2025 LIVE: Forward-looking inflation appears comfortable, with 2QFY26 projected at 4.0%, which could open up space for one more rate cut. However, the growth trajectory remains the key factor. Another market positive was the announcement of an Open Market Purchase operation of G-Secs worth ₹1 lakh crore and a $5 billion forex swap in December to ease banking liquidity. Interestingly, to support growth, RBI acted proactively to provide liquidity in December itself, even though tightening is expected only in 4QFY26. With this approach, we expect more OMO announcements and FX swaps going forward. Overall, this is a dovish and market-supportive policy action, expected to drive yields lower, said Vikas Garg, head of fixed income at Invesco Mutual Fund.
RBI Monetary Policy Meeting 2025 LIVE: Gross foreign direct investment (FDI) flows to India grew by 19.4% to $51.8 billion in April-September 2025-26 from $43.4 billion during the same period a year ago. Net FDI inflows increased by 127.6% to $7.7 billion in April-September 2025-26 from $3.4 billion during the same period a year ago.
RBI MPC Meeting 2025 LIVE: India’s services exports grew by 8.8% YoY during Q2FY26, while services imports rose by 3.7% with net services exports growing by 14.5% during the same period. In October 2025, services exports at $35.2 billion grew at 2.2%, while services imports at $ 17.7 billion increased by 2.9%. Net services exports grew by 1.5% and stood at $17.4 billion. India’s inward remittances increased by 10.7% YoY to $39.0 billion in Q2FY26.
RBI Monetary Policy Meeting 2025 LIVE: The RBI has decided to conduct the following operations during December 2025 to inject liquidity into the banking system:
> OMO purchase auctions of Government of India securities for an aggregate amount of ₹1,00,000 crore in two tranches of ₹50,000 crore each to be held on December 11, 2025, and December 18, 2025
> USD/INR Buy/Sell Swap auction of $5 billion for a tenor of three years to be held on December 16, 2025
RBI MPC Meeting 2025 LIVE: We believe that there would be scope for another 25 bps cut this cycle, as inflation is expected to remain benign and despite high real GDP print there are no signs of overheating in the economy. The all-time low print of inflation ex-gold, silver, food and petroleum products (ex-of covid period) confirms the same, said Garima Kapoor, Deputy Head of Research & Economist at Elara Capital.
RBI Monetary Policy Meeting 2025 LIVE: The RBI’s 25 bps cut to 5.25% is a timely, growth-oriented move supported by a soft inflation backdrop, with core CPI easing and the full-year print expected near 2%. The liquidity boost through OMOs and the USD/INR swap will help lower funding costs and improve credit transmission. For the equity market, the policy is constructive for rate-sensitive sectors like Banks, NBFCs, Autos and Real estate stand to benefit from a better demand outlook and stronger earnings visibility, said Ravi Singh, Chief Research Officer from Master Capital Services Ltd.
By retaining a neutral stance, the RBI has kept the door open for further calibrated easing while maintaining macro stability amid a broadening economic recovery, he said.
RBI MPC Meeting 2025 LIVE: The Indian stock market benchmark indices, Sensex and Nifty 50, traded 0.3% higher after the RBI cut repo rate by 25 bps to 5.25%. The MPC raised FY26 GDP estimates and reduced CPI inflation forecast. The Sensex rallied 313.39 points, or 0.37%, to 85,578.71, while the Nifty 50 was up 98.75 points, or 0.38%, at 26,132.75.
RBI Monetary Policy Meeting 2025 LIVE: Indian government bond yields declined after the RBI announced OMO purchases worth ₹1 lakh crore in December. The 10-year benchmark yield declined to 6.47% from 6.51%.
RBI MPC Meeting 2025 LIVE: RBI decided to conduct OMO purchases of Government Securities amounting to ₹1 lakh crore in this month. Moreover, RBI will also be conducting a 3-year USD/INR buy-sell swaps in December to inject further liquidity in the banking system
RBI Monetary Policy Meeting 2025 LIVE: The moderation in the weighted average lending rates of the outstanding rupee loans has been to the extent of 63 basis points, which again, is very satisfactory. The transmission has been very broad based across sectors. On the deposit side, the weighted average domestic term deposit rate on fresh deposits has declined by 105 basis points, while that on outstanding deposits has softened by 32 bps over the same period. We are committed to provide sufficient durable liquidity to the banking system, said Governor Sanjay Malhotra.
RBI MPC Meeting 2025 LIVE: System liquidity, as measured by the net position under the LAP, stood at an average surplus of ₹1.5 lakh crore for the period since the MPC last met in October. Money market rates have remained largely aligned to the policy rate of 5%, amidst comfortable liquidity conditions, said Governor Malhotra.
RBI Monetary Policy Meeting 2025 LIVE: RBI to conduct OMO purchases of government securities of ₹1 lakh crore.
RBI Monetary Policy Meeting 2025 LIVE: 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, said RBI Governor Sanjay Malhotra.
RBI MPC Meeting 2025 LIVE: RBI to conduct three-year dollar rupee buy-sell swap of $5 billion in December, says Governor Malhotra.
RBI MPC Meeting 2025 LIVE: RBI cuts FY26 CPI inflation forecast to 2% from 2.6% earlier. Here are the quarterly estimates:
RBI Monetary Policy Meeting 2025 LIVE: RBI raises FY26 GDP growth estimates to 7.3% from 6.8% earlier. Here are the quarterly estimates:
RBI MPC Meeting 2025 LIVE: 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, said RBI Governor.
RBI MPC Meeting 2025 LIVE: The Reserve Bank of India’s Monetary Policy Committee unanimously voted to reduce repo rate by 25 bps and have decided to continue with a ‘neutral’ stance.
RBI Monetary Policy Meeting 2025 LIVE: Inflation at a benign 2.2% and growth at 8% for the first half of this year, presents a rare Goldilocks period, said the Governor Sanjay Malhotra.
RBI MPC Meeting 2025 LIVE: Governor Sanjay Malhotra-led MPC cuts repo rate by 25 bps to 5.25%; maintains policy stance at ‘Neutral’
RBI Monetary Policy Meeting 2025 LIVE: Governor Sanjay Malhotra begins his monetary policy speech
RBI MPC Meeting 2025 LIVE: Bank Nifty index traded marginally higher on Friday ahead of the announcement of the RBI monetary policy. The Bank Nifty index traded 85.60 points, or 0.14%, higher at 59,371.05.
RBI Monetary Policy LIVE: 1 year forward CPI is expected to trend upwards and settle closer to 4.25% despite unfavourable base effects next year. GST cuts, China exporting disinflation and lower wage growth would keep inflation under check. CPI trajectory offers some monetary space for easing, and analysts believe that the space for rate cuts is limited.
RBI Monetary Policy LIVE: The Indian stock market benchmark indices, Sensex and Nifty 50, traded flat ahead of the monetary policy announcement. The Indian rupee opened higher, beginning the session at 89.85 against the US dollar, 13 paise higher than the previous close of 89.98, ahead of the MPC decision.
RBI Monetary Policy LIVE: We are hopeful of a rate cut as it would be highly encouraging for homebuyers and developers alike, potentially boosting affordability and investments in the sector. It would also strengthen market confidence and also act as a strong signal of policy support for the real estate sector and the broader economy. However, for the intended benefits to materialize, the transmission of the reduced rates must also be faster, ultimately benefiting the real estate sector and contributing positively to overall economic expansion. A stable interest-rate environment will play a crucial role in sustaining homebuyer confidence in the coming year, said Ramani Sastri, Chairman and MD, Sterling Developers.
RBI Monetary Policy LIVE: RBI policy announcement today comes just days before the US Federal Reserve’s policy meeting. The next FOMC meeting is scheduled for December 9–10, 2025. Market players are optimistic that the Fed will reduce interest rates by 25 basis points.
RBI Monetary Policy LIVE: Rupee is near its all-time low, which is a cause of concern for the RBI. Continuous foreign exchange intervention can tighten banking liquidity, and hence, analysts expect RBI would ensure agile liquidity management through OMOs and FX swaps of ₹1-2 lakh crore.
RBI Monetary Policy LIVE: Axis Securities believes it is important that RBI continues with its dovish stance on rates or liquidity to prevent tightening financial conditions and /or perceived higher rates that could hurt GDP in the next financial year.
RBI Monetary Policy LIVE: India’s near-term GDP growth has been lifted by co-ordinated policy support - tax rejig, GST cuts, liquidity infusion, credit push. Temporary boosts from front-loaded exports are fading. High frequency indicators continue to show uptrend but unless there is a big fiscal push in next year’s budget, tariff overhang, low income levels and low wage growth can lead to below potential growth for CY 2026. Axis Securities believes CY26 growth can be around 6.5%.
RBI Monetary Policy LIVE: Here are key takeaways from October RBI monetary policy today:
1] Policy Measures:
2] GDP Growth Estimates
RBI raised FY26 GDP growth estimates to 6.8% from 6.5% earlier. Here are the quarterly estimates:
3] CPI Inflation Forecast
RBI cut FY26 CPI inflation forecast to 2.6% from 3.1% earlier. Here are the quarterly estimates:
RBI Monetary Policy LIVE: Clear near-term inflation visibility — and the need to shift away from an increasingly misplaced 1-year-ahead CPI anchor — strengthens the case for a December cut, even with a possible split MPC. Primary liquidity infusion ( ₹2 trillion needed in the rest of FY26E) and tactically smart communication will need to complement rate-easing. We reiterate that rupee’s softness should not be misread as a rate-easing deterrent but as a natural growth stabilizer, said Madhavi Arora, Lead Economist at Emkay Global Financial Services Ltd.
