MPC Cuts Repo Rate to 5.25% as Record-Low Inflation and Strong Growth Create Policy Room

Image
Last Updated : Dec 05 2025 | 1:04 PM IST
The Reserve Bank's Monetary Policy Committee cut the policy repo rate by 25 bps to 5.25% while maintaining a neutral stance, with SDF and MSF adjusted to 5% and 5.50% respectively. The move is supported by robust GDP growth of 8.2% in Q2 2025-26, sustained domestic demand and strong services and industrial activity.

Inflation hit a record low in October 2025 as food prices corrected and core inflation eased, aided by favourable supply conditions and moderating global commodities. With a softer inflation outlook and stable growth drivers, the MPC signalled continued policy space to support the economic momentum.

Powered by Capital Market - Live News

Disclaimer: No Business Standard Journalist was involved in creation of this content

*Subscribe to Business Standard digital and get complimentary access to The New York Times

Smart Quarterly

₹900

3 Months

₹300/Month

SAVE 25%

Smart Essential

₹2,700

1 Year

₹225/Month

SAVE 46%
*Complimentary New York Times access for the 2nd year will be given after 12 months

Super Saver

₹3,900

2 Years

₹162/Month

Subscribe

Renews automatically, cancel anytime

Here’s what’s included in our digital subscription plans

Exclusive premium stories online

  • Over 30 premium stories daily, handpicked by our editors

Complimentary Access to The New York Times

  • News, Games, Cooking, Audio, Wirecutter & The Athletic

Business Standard Epaper

  • Digital replica of our daily newspaper — with options to read, save, and share

Curated Newsletters

  • Insights on markets, finance, politics, tech, and more delivered to your inbox

Market Analysis & Investment Insights

  • In-depth market analysis & insights with access to The Smart Investor

Archives

  • Repository of articles and publications dating back to 1997

Ad-free Reading

  • Uninterrupted reading experience with no advertisements

Seamless Access Across All Devices

  • Access Business Standard across devices — mobile, tablet, or PC, via web or app

More From This Section

First Published: Dec 05 2025 | 12:59 PM IST

Next Story