RBI MPC meeting latest updates: RBI slashes Repo Rate by 25 bps to 5.25 per cent, Governor Sanjay Malhotra makes key announcement

The Monetary Policy Committee (MPC) has unanimously decided to cut the policy rate by 25 basis points, bringing it down to 5.25%.

The Monetary Policy Committee (MPC) has unanimously decided to cut the policy rate by 25 basis points, bringing it down to 5.25%, RBI Governor Sanjay Malhotra announced on Friday. The announcement was made after the conclusion of the three-day Monetary Policy Committee (MPC) meeting held from December 3 to 5. Furthermore, the RBI Governor Sanjay Malhotra added that the MPC undertook a detailed assessment of evolving macroeconomic conditions and future outlook before arriving at the unanimous decision to implement the rate cut with immediate effect.

#WATCH | Mumbai | RBI Governor Sanjay Malhotra says, “… Both headline and core inflation are expected to be at or below the 4% mark during the first half of next year.”

“The MPC noted that the headline inflation has eased significantly and is likely to be softer than the… pic.twitter.com/R54mk3IL85

— ANI (@ANI) December 5, 2025

While announcing the decision, the Governor stated, “The MPC met on the 3rd, 4th, and 5th of December to deliberate and decide on the policy repo rate. After a detailed assessment of the evolving macroeconomic conditions and outlook, the MPC voted unanimously to reduce the policy repo rate by 25 basis points to 5.25 per cent, with immediate effect.” In addition, he even characterised India’s current macroeconomic moment as a “rare goldilocks period”, that currently marks high economic growth and exceptionally low inflation.

#WATCH | Mumbai | RBI Governor Sanjay Malhotra says, “… CPI inflation for this year is now projected at 2%, again about 0.6% downwards from our earlier outlook. Q3 is at 0.6% and Q4 moves up to 2.9%. CPI inflation for Q1 and Q2 next year is projected at 3.9 and 4%… pic.twitter.com/5lcagSUK8q

— ANI (@ANI) December 5, 2025

The rate cut follows a phase of strong macroeconomic performance supported by robust GDP growth of 8.2 per cent in the second quarter of the current financial year and low levels of inflation.India’s retail inflation fell sharply to 0.25 per cent in October 2025, according to data released by the Ministry of Statistics and Programme Implementation (MoSPI), marking a record low.

This is a breaking news. Further details will be updated.