Published: 1 December 2025Business TodayGeneral
RBI MPC Meeting Begins: Three-Day Deliberation on Monetary Policy (December 3-5)
The Reserve Bank of India's Monetary Policy Committee (MPC) began its three-day meeting from December 3, with the decision to be announced on December 5, 2025. Economists widely expected a 25 basis points cut in the repo rate, given that India's retail inflation had fallen sharply to a record low of 0.25% in October 2025. The MPC had already cut the repo rate three times in 2025 (February, April, and June) by a cumulative 100 bps from 6.50% to 5.50%.
The RBI has been in an easing cycle since February 2025 to support growth amid benign inflation. India's GDP growth was robust at 8.2% in Q2 FY2025-26. The committee was also expected to revise its CPI inflation forecast downward and its GDP growth forecast upward.
Mains angle
Q: Examine how the Reserve Bank of India's Monetary Policy Committee meeting of December 2025 reflected India's easing cycle amid record-low inflation and earlier repo rate cuts during the year.
Answer (50 words):
India's Monetary Policy Committee convened December 3-5, 2025, with a 25 basis points cut widely expected after retail inflation collapsed to a record low of 0.25% in October 2025. Three prior cuts in February, April and October 2025 had already lowered the repo rate from 6.50% to 5.50%.
6-axis classification
CoverageNationalSubjectEconomicExamBasic Computer Instructor · CET Graduation · CET Senior Secondary · EO/RO · LDC · Mahila Supervisor · Patwar · PTI · RAS · REET · RPSC SI · School Lecturer · Senior Computer Instructor · Senior Teacher · UPSC · Vanpal · BothSourceBusiness Today
Practice MCQ from this story
SolveTap an option below. Correct or incorrect feedback appears instantly.
Linked questionMedium
What was the repo rate before the RBI MPC meeting in December 2025?
Explanation · Correct answer CBefore the December 2025 MPC meeting, the repo rate was 5.50% after three consecutive cuts in February, April, and June 2025.
