The Reserve Bank of India began its three-day Monetary Policy Committee (MPC) meeting on Wednesday, December 3, during which policymakers will evaluate whether current economic conditions justify a rate cut or if easing should be delayed. In October, the MPC kept the repo rate unchanged at 5.5% for the fourth consecutive meeting. Governor Sanjay Malhotra noted that inflation has moderated significantly, allowing the committee to maintain its existing stance. Earlier in the year, the RBI reduced the benchmark rate by 100 basis points—from 6.5% to 5.5%—before pausing further cuts in August.
The December 3–5 meeting will conclude with Malhotra announcing the policy outcome at 10 a.m., followed by a press conference at noon. His address will be streamed live on the RBI’s YouTube channel, website, and X handle.
Markets expect the central bank to shift gradually toward a more dovish tone. Analysts say easing inflation, lower bond yields, and steady foreign inflows could prompt the RBI to prepare for potential rate cuts in early 2026. However, most experts believe the central bank will hold rates at 5.5% on December 5, with limited room for further reductions.