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RBI Monetary Policy Update - December 2025

Repo Rate changed at 5.25 per cent
09 December 2025
    Local Market Commentary
    Download the full reportPDF, 199.63KB

    RBI Monetary Policy Update - December 2025

    MPC delivers a dovish cut while taking a Źpolicy-by-policy approach: \n\nThe MPC in a unanimous vote decided to reduce the Repo Rate by 25bps to 5.25 per cent while maintaining a neutral stance.

    • We see todays policy decision as a dovish cut with the expectation of incremental policy easing being data dependent.
    • We think the factors will play out positively for the RBI-MPC to reduce the Repo rate by another 25bps in 1H CY26 while in the meantime we think RBI might step up the liquidity measures, esp. in Q4FY26.

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