RBI MPC Meeting Highlights: Cenbak's repo rate cut to 5.25% spurs optimism across India’s sectors

RBI MPC Meeting Highlights: The Reserve Bank of India’s Monetary Policy Committee (MPC) on Friday (December 5) voted unanimously to reduce the repo rate by 25 basis points to 5.25%, while retaining a neutral policy stance. RBI Governor Sanjay Malhotra described the current economic conditions as a “rare Goldilocks period”, with strong growth and controlled inflation.
 

The central bank also announced open market operations (OMO) purchases of ₹1 lakh crore in G-Secs and a three-year dollar-rupee buy-sell swap. Looking ahead, growth is expected to moderate slightly, while headline and core inflation are projected to remain at or below 4% during the first half of FY27, providing policy space for the RBI to support the economy.

Watch this space for all the LIVE updates.

Dec 5, 2025 3:38 PM IST

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Dec 5, 2025 3:24 PM IST

RBI MPC Meeting Live Updates: "This policy facilitates faster transmission of rate cuts to the grassroots level"

Umesh Revankar, Executive Vice Chairman, Shriram Finance

“The MPC’s unanimous decision to reduce the repo rate to 5.25% is a timely and decisive move that aligns perfectly with the current ‘Goldilocks’ moment in the Indian economy where high growth coexists with unprecedentedly low inflation. With Q2 GDP accelerating to 8.2% and October inflation dipping to a mere 0.3%, the RBI has successfully transitioned from fighting price rise to fueling momentum.

For the NBFC sector, and specifically for last-mile financiers like Shriram Finance, this policy is a significant enabler. The continued ‘Neutral’ stance, combined with the ₹1 lakh crore OMO purchase announcement, ensures that liquidity remains congenial. This will facilitate the faster transmission of rate cuts to the grassroots level benefiting the small truck operator, the rural entrepreneur, and the MSME borrower who are the engines of this 8.2% growth.

We are particularly encouraged by the central bank’s observation of ‘robust rural demand’ supported by healthy Kharif production and reservoir levels. We are already seeing this translate into strong credit offtake for commercial vehicles and farm equipment, a trend further catalyzed by the recent GST rationalization. With corporate and financial balance sheets at their healthiest in years, reflected in the sector’s robust CRAR of over 25%, we are well positioned to leverage this lower cost of funds to drive credit inclusion deeper into semi-urban and rural India.”

Dec 5, 2025 3:07 PM IST

RBI MPC Meeting Live Updates: "A balanced policy that eases borrowing costs while shoring up financial conditions"
Sachin Bajaj, Executive Vice President & Chief Investment Officer, Axis Max Life Insurance, on today’s RBI MPC announcement.

“Beyond the rate cut, RBI’s decision to purchase government bonds worth up to ₹ 1 lakh crore through open market operations (OMO), combined with a USD 5 billion buy-sell swap, marks a decisive effort to restore durable liquidity and stabilize currency markets after the rupee’s sharp depreciation. Through this dovish stance, RBI has struck a balanced policy that eases borrowing costs while shoring up financial conditions. With inflation at a multi-year low, there remains ample scope for further monetary support. We continue to see room for an additional 25 basis-point repo-rate cut, potentially taking the rate to 5%, later this financial year, emanating from uncertain global environment and tariffs.”

Dec 5, 2025 2:51 PM IST

RBI MPC Meeting Live Updates: Naval Kagalwala, COO & Head of Products at Shriram Wealth says

Naval Kagalwala, COO & Head of Products at Shriram Wealth Ltd.

“The RBI MPC cut the repo rate by 25 bps, supported by the benign inflation outlook on both headline and core inflation. The neutral policy stance was maintained. Inflation for FY26 is projected at 2% vis-à-vis 2.6% earlier, with projection for H1FY27 also lowered when compared to Oct estimates (with Q1 and Q2 now seen at 3.9% and 4% respectively – within RBI’s medium-term inflation target). Additionally, real GDP growth for this year was raised from 6.8% to 7.3%. Importantly, the RBI also announced measures such as INR 1 trillion OMOs to be held in two equal tranches this month, and USD 5bn buy/sell swap of 3Y to infuse durable liquidity. The overall outcome was largely along expected lines, with limited downside in bond yields seen following the announcement. The Central Bank clarified that the primary purpose of the OMO was to manage liquidity and not to directly influence yields. During the post policy conference, RBI Governor assured to provide ample system liquidity in the current rate environment, with OMOs to be conducted across maturities. The Governor also noted that tolerance towards INR depreciation had not changed and repeated that INR will be allowed to move as per market forces. Lastly, the policy statement noted that growth-inflation dynamics continues to provide space to support the growth momentum – implying that conducive financial conditions are here to stay as long as the inflation remains soft.”

Dec 5, 2025 2:39 PM IST

RBI MPC Meeting Live Updates: RBI's Repo Rate Cut to 5.25% Spurs Optimism Across India’s Real Estate Sector

The RBI’s 25 basis-point repo rate cut has emerged as a significant booster for the real estate sector, setting the stage for heightened activity across residential and commercial markets. With inflation stabilising and economic growth strengthening, the reduced interest rate regime is expected to meaningfully enhance homebuyer affordability, ease borrowing costs for developers, and improve overall market liquidity.

Dec 5, 2025 2:15 PM IST

RBI MPC Meeting Live Updates: Not sure whether there is any possibility of any further rate cut going forward

Soumya Kanti Ghosh, Group Chief Economic Advisor, State Bank of India:

Rate cuts

Even though the central bank has kept the options open in terms of more easing, my sense is that if you look into the COVID time when the rates were brought down to 5.15% and this time, the rates have been brought down to 5.25%. There is a similarity between that COVID time and this time, so I think rate should stay pretty close to 5.15%. In my sense, even though the central bank has kept the doors open for possibility of easing in the next year, I am not sure whether there is any possibility of any further rate cut going forward. But if the inflation numbers continue to surprise downwards which it should there could be space. But in my sense. I think 5.25% for now, it will stay at that level for longer.

Liquidity

I think the RBI has been very smart enough. I think the Buy Sell swap will not only inject liquidity, but it will also support the rupee. Because when you are buying dollars, these dollars will be used up to support the rupee in the event of any fall in the value of the rupee.

Dec 5, 2025 2:09 PM IST

RBI MPC Meeting Live Updates: RBI MPC Policy Reaction:Kaustubh Gupta, Co-Head of Fixed Income, ABSL AMC

The policy has come in line with our expectation. And as far as your liquidity is concerned, this ₹1.5 lakh crore OMO plus fx swap is only for December. Our base case is that between June to March we’ll see another ₹1 lakh crore of OMO, in fact, for next year, our OMO expectation is about ₹4 lakh crore, which means that within next 12 months we think that about ₹5 lakh crore of M0 money, which is reserve money, will be added largely through OMOs by RBI to ensure that liquidity stays about 1% of NDTL throughout the year.

Dec 5, 2025 1:36 PM IST

RBI MPC Meeting Live Updates: Parijat Agrawal of Union Asset Management Company Private Ltd says

“The MPC (Monetary Policy Committee) cut the repo rate by 25bps along with durable liquidity measures which augur well for overall economic growth. The lower inflation numbers provide room for MPC to remain focussed on pro-growth measures. The favourable inflation outlook, which is below the RBI’s comfort zone, alongside relatively lower GDP projections for the upcoming year than the previous fiscal and lower high frequency leading indicators leave some space for additional rate cuts going ahead.”

Dec 5, 2025 1:25 PM IST

RBI MPC Meeting Live Updates: 'RBI rate cut supports growth and maintains stability'

Jyoti Prakash Gadia, Managing Director of Resurgent India, said the RBI’s policy announcements are aligned with the evolving growth–inflation dynamics, supporting the economy without compromising stability. “The rate cut of 25 basis points supports growth and is a very welcome step. The move indicates recognition of the need to maintain growth momentum despite global uncertainties and recent rupee volatility,” he added.

Dec 5, 2025 1:23 PM IST

RBI MPC Meeting Live Updates: 'RBI’s rate cut supports growth, leaves room for further easing'

Parijat Agrawal, Head of Fixed Income at Union Asset Management Company, said the RBI’s 25-basis-point repo rate cut along with durable liquidity measures augurs well for economic growth. “The lower inflation numbers provide room for MPC to remain focussed on pro-growth measures,” he added.

Agrawal noted that the favourable inflation outlook, which is below the RBI’s comfort zone, alongside relatively lower GDP projections for the upcoming year and softer high-frequency indicators, leaves some space for additional rate cuts going ahead.

Dec 5, 2025 1:21 PM IST

RBI MPC Meeting Live Updates: 'RBI’s 25-bps cut boosts liquidity and rate-sensitive sectors'

Ravi Singh, Chief Research Officer at Master Capital Services, said the RBI’s 25-basis-point repo rate cut to 5.25% signals pro-growth momentum and easing liquidity. “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, which stand to benefit from a better demand outlook and stronger earnings visibility,” he added.

Dec 5, 2025 1:17 PM IST

RBI MPC Meeting Live Updates: RBI policy to boost credit demand and transmission, says AU Small Finance Bank CEO

Sanjay Agarwal, Founder, MD & CEO of AU Small Finance Bank, said the RBI’s unanimous 25-basis-point repo rate cut to 5.25% is growth-supportive and timely amid external uncertainties. “In continuation of RBI’s developmental and regulatory policies announced on October 1, 2025, today’s rate cut decision will supplement the government’s recent initiatives like GST rationalization, tax breaks, notification of labour codes, etc., to minimise the adverse impact of global headwinds,” he noted.

Agarwal added that the RBI’s liquidity measures, including OMO purchases of ₹1,00,000 crore and a $5 billion sell-buy swap, will support monetary policy transmission, reduce credit costs, and augment demand. “The MPC used the available policy space at an appropriate time in perfect coordination with fiscal policy as the inflation expectations were benign.”

Dec 5, 2025 1:14 PM IST

RBI MPC Meeting Live Updates: Shriram General Insurance's CIO sees rate cut to support economic momentum

Ashwani Dhanawat, Executive Director & Chief Investment Officer at Shriram General Insurance, said the RBI’s Monetary Policy Committee (MPC) concluded its December 2025 review with a measured yet anticipated step forward. “In line with market expectations, the repo rate has been reduced by 25 basis points to 5.25%, marking the fourth cut in the easing cycle this year (totaling 125 bps),” he noted.

Dhanawat added that the adjustment reflects the MPC’s confidence in sustained disinflation while maintaining a neutral policy stance to support robust economic momentum.

Dec 5, 2025 1:12 PM IST

RBI MPC Meeting Live Updates: 'RBI rate cut to boost investor confidence and infrastructure investment'

Venkatesh, CEO of Bharat InvITs Association, said the RBI’s recent 25-basis-point rate cut is a welcome step for the economy. “Lower financing costs will ease liquidity and reduce the cost of capital, which will be beneficial for the InvITs industry. A supportive rate environment strengthens investor confidence and encourages more long-term capital into the sector, contributing to India’s infrastructure development and asset-monetisation efforts,” he added.

Dec 5, 2025 1:04 PM IST

RBI MPC Meeting Live Updates: Kama Jewelry's Colin Shah sees repo rate cut as positive for domestic jewellery market

Colin Shah, MD of Kama Jewelry, said the RBI’s decision to reduce the repo rate while maintaining a neutral stance is a timely boost for the jewellery industry. “As financing costs are seen softening and liquidity improves, consumer credit will be more accessible, which is a very critical factor as the country enters the wedding season. Jewellery purchase is partly discretionary and mostly leveraged for many Indian consumers; this softening may therefore trigger demand across gold, diamond and gemstone jewellery,” he noted.

Dec 5, 2025 12:58 PM IST

RBI MPC Meeting Live Updates: 'RBI rate cut balances growth support and price stability'

Saurav Ghosh, Co-founder of Jiraaf, said the RBI’s 25-basis-point repo rate cut, combined with a reaffirmation of a neutral stance, strikes a careful balance between price stability and growth support. “The lowering of the rate reflects the comfort the central bank now has with subdued inflation, while the boost in the GDP growth forecast to 7.3% from 6.8% signals renewed confidence in India’s economic momentum,” he noted.

Dec 5, 2025 12:53 PM IST

RBI MPC Meeting Live Updates: 'RBI's rate cut aligned with inflation mandate, room for further easing'

Garima Kapoor, Deputy Head of Research & Economist at Elara Capital, said the RBI’s unanimous 25-basis-point repo rate cut aligns with the central bank’s commitment to inflation targeting. “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,” she noted.

Dec 5, 2025 12:48 PM IST

RBI MPC Meeting Live Updates: Sustained growth supported by RBI policy, says SBI Mutual Fund CIO

Rajeev Radhakrishnan, CFA and CIO – Fixed Income at SBI Mutual Fund, said the RBI has effectively used available monetary space to support sustained growth. “The conditions necessary for effective transmission have also been addressed through the announcement of durable liquidity measures, including OMOs and FX swaps,” he noted.

Dec 5, 2025 12:42 PM IST

RBI MPC Meeting Live Updates: Emkay Global Financial Sevices' Madhavi Arora sees rate cut as growth-positive

Madhavi Arora, Chief Economist at Emkay Global Financial Services, said the RBI’s unanimous 25-bp repo rate cut to 5.25%, alongside liquidity support, is a measured move reflecting the central bank’s mandate on inflation. “With inflation persistently undershooting, RBI expectedly found it harder to ignore its core mandate of inflation management and therefore finally delivered a unanimous 25-bp cut,” she noted.

Dec 5, 2025 12:39 PM IST

RBI MPC Meeting Live Updates: Expert sees neutral policy stance supporting growth and smooth transmission

Rajani Sinha, Chief Economist at CareEdge Ratings, said the RBI MPC’s decision to slash the policy repo rate by 25 basis points while maintaining a neutral stance aligns with expectations. “RBI chose to utilise the window of opportunity provided by very low inflation to provide impetus to growth. Moreover, the liquidity-injecting measures announced should ensure smooth transition of policy rate cuts done so far,” she added.

Dec 5, 2025 12:34 PM IST

RBI MPC Meeting Live Updates: 'RBI 25-bps cut strengthens real estate demand and buyer confidence'

Rishabh Periwal, Senior Vice President at Pioneer Urban Land & Infrastructure, welcomed the 25-basis-point reduction in the repo rate to 5.25%, describing it as a positive move for the real estate sector. “Lower borrowing costs will make housing loans more affordable, strengthening purchasing power and boosting demand, especially in end-user and aspirational segments,” he said.

Dec 5, 2025 12:32 PM IST

RBI MPC Meeting Live Updates: 'RBI rate cut supports credit growth across sectors'

Vijay Gour, Research Analyst at Mirae Asset ShareKhan, said the RBI’s unanimous decision to reduce the repo rate by 25 basis points while retaining a neutral stance is a positive development for credit-sensitive sectors. The policy was accompanied by revised FY26 projections, including an increase in Real GDP growth to 7.3% from 6.8% and a CPI inflation estimate lowered to 2.0% from 2.6%.

Dec 5, 2025 12:28 PM IST

RBI MPC Meeting Live Updates: RBI policy expected to gradually ease interest rates, says Mirae Asset CIO

Mahendra Kumar Jajoo, CIO – Fixed Income at Mirae Asset Investment Managers (India), said the RBI’s Monetary Policy Committee delivered a 25-basis-point repo rate cut in line with recent guidance, despite some market scepticism due to recent currency volatility. He noted that the MPC also announced strong liquidity measures, including OMO purchases of ₹1 lakh crore and a three-year dollar-rupee buy-sell swap for $5 billion.

Dec 5, 2025 12:26 PM IST

RBI MPC Meeting Live Updates: 'RBI's rate cut to boost office real estate and occupancy'

Utkarsh Kawatra, CEO and Co-Founder of myHQ by ANAROCK, said the RBI’s 25-basis-point repo rate cut is expected to positively impact India’s office real estate sector. “Reduced borrowing costs support new commercial supply pipelines while improving affordability for occupiers financing expansions or fit-outs,” he noted.

He added that sectors such as BFSI, GCCs, startups, and technology firms are likely to accelerate planned expansions, strengthening demand and improving occupancy levels over the next 2–3 quarters. “Bengaluru and Gurgaon, which typically react fastest to positive economic signals, are expected to see new conversations around seats and upgrades first,” Kawatra said.

Dec 5, 2025 12:21 PM IST

RBI MPC Meeting Live Updates: 'RBI rate cut timely, could open door for further easing'

Vishal Goenka, Co-Founder of IndiaBonds.com, welcomed the RBI’s 25-basis-point repo rate cut, noting its timeliness given recent inflation prints and the limited transmission of previous rate reductions in the banking sector. “Interestingly, the forward expectations of inflation have come much lower, opening the door for another rate cut if required before the end of the financial year,” he said.

He added that the policy is aimed at making funding cheaper for governments and corporates. “The ₹1 lakh crore OMO purchases announcement should assist in boosting liquidity and flattening the yield curve,” Goenka noted.

For investors, he suggested strategic moves in the bond market: “Following this, investors should look to lock in current high rates from corporates in the 2–3-year segment and complement this by buying long-end government bonds for potential gains.”

Dec 5, 2025 12:17 PM IST

RBI MPC Meeting Live Updates: 'RBI rate cut aims to sustain growth and liquidity'

Ajay Kejriwal, Executive Director of Choice International Ltd., said the RBI’s Monetary Policy Committee decision to reduce the repo rate by 25 basis points to 5.25% and maintain a neutral stance reflects the central bank’s response to cooling inflation and strong economic growth.

He noted that the RBI also plans to conduct OMO purchases of government securities worth ₹1 lakh crore to infuse durable liquidity. “The primary focus at this point is to keep GDP growth intact by utilizing the benign inflation outlook,” Kejriwal said, adding that CPI inflation is expected to remain within the 4% tolerance limit till Q2FY27.

Dec 5, 2025 12:14 PM IST

RBI MPC Meeting Live Updates: 'RBI rate cut and liquidity measures support growth and yields'

Ritesh Taksali, Chief Investment Officer at Edelweiss Life Insurance, said the RBI’s latest Monetary Policy Committee decision “has firmly supported growth, cutting the repo rate by 25 bps as inflation has cooled off and is expected to remain benign over the next year.”

He noted that the central bank also infused liquidity via OMOs and FX swaps, addressing pressures from dollar outflows and currency defence that drain banking system liquidity. “RBI’s dovish pivot is required to support yields which have remained under pressure,” Taksali added.

He highlighted that structurally, with what the RBI Governor described as a rare ‘goldilocks’ scenario, the policy sets the stage for stable macroeconomic conditions in the near term.

Dec 5, 2025 12:10 PM IST

RBI MPC Meeting Live Updates: 'RBI rate cut and liquidity measures support growth and financial conditions'

Anurag Mittal, Head of Fixed Income at UTI AMC, said the RBI’s latest monetary policy combines multiple measures to support growth and ease financial conditions. “The RBI has clearly delivered a coordinated policy push by combining a 25bps rate cut with ₹1 trillion of OMOs and a $5 billion FX buy-sell swap. The message is unambiguously towards easing of financial conditions and supporting the next leg of growth,” he said.

Mittal noted that the combination of easing transmission and softer liquidity conditions creates a favourable backdrop for investors, particularly in short- to medium-duration strategies, where term premium compression is expected to be most pronounced. “Investors with more than one year investment horizon can consider short-duration and corporate bond strategies,” he added.

Dec 5, 2025 12:02 PM IST

RBI MPC Meeting Live Updates: 'RBI’s rate cut may boost real estate and homebuyer sentiment'

Amit Modi, Director of County Group, welcomed the RBI’s 25-basis-point repo rate reduction, bringing the rate down to 5.25%. He noted that, in the context of the past year, the rate has fallen from 6.50% in December 2024, representing a cumulative reduction of 1.25%.

“No doubt, both homebuyers and the real estate sector will be major beneficiaries,” Modi said. He also highlighted the broader economic backdrop, adding that benign inflation and robust GDP growth are encouraging signals that will further support the real estate sector’s prospects.

According to him, the combination of lower borrowing costs and positive macroeconomic trends is expected to strengthen both buyer sentiment and investment appetite in the housing market.

Dec 5, 2025 11:53 AM IST

RBI MPC Meeting Live Updates: RBL Bank says rate cut is ‘dovish for now, watchful on FX and yields’

According to Anitha Rangan, Chief Economist at RBL Bank, the RBI is “once again front-loading its rate cut,” taking advantage of inflation trending lower and providing space to bolster growth momentum. With the central bank also revising inflation projections downward and raising its outlook for growth, she notes that the policy “indicates that inflation is giving headroom to support growth.”

Rangan highlights that the announcement of OMOs suggests the RBI is taking a proactive stance on government securities yields, ensuring that the rate-cut transmission does not lead to undue volatility in the bond market. “In addition, the three-year FX swap shows that the RBI is aware of the FX risks,” she says, pointing out that similar swaps in the past have helped stabilise the currency. More interventions, she adds, could be deployed if needed.