The Reserve Bank of India's Monetary Policy Committee (MPC) unanimously voted to reduce the policy repo rate by 25 basis points to 5.25% on December 5, 2025, maintaining its 'neutral' stance. This was the fourth rate cut of 2025, bringing cumulative cuts to 125 basis points. The Standing Deposit Facility (SDF) rate is now 5.00%, and the Marginal Standing Facility (MSF) rate and Bank Rate stand at 5.50%.

Real GDP growth for FY26 is projected at 7.30%, with Q3 at 7.00% and Q4 at 6.50%. CPI inflation fell to a historic low of 0.25% in October 2025, breaching the 2% lower tolerance band for the first time under the flexible inflation targeting framework. RBI also announced OMO purchases of INR 1 trillion and USD 5 billion Buy/Sell swap to infuse durable liquidity of approximately INR 1.5 trillion.