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Wednesday, December 03, 2025 | 06:40 PM ISTहिंदी में पढें
Rate cut could be a close call as RBI eyes lower CPI, steady growth view
RBI will pare CPI inflation projection again, but might not change growth estimate for now; dovish undertone likely
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After the RBI’s last monetary policy, the yield on the 10-year government bond rose 9 basis points, to 6.42 per cent, as the market saw an end of the easing cycle.
After a one percentage point cut in the policy repo rate in three tranches — between February and June — the Monetary Policy Committee (MPC) of India’s central bank left the rate unchanged at 5.5 per cent in August. The “neutral” monetary policy stance also stayed put. Both decisions of the Reserve Bank of India’s (RBI’s) six-member rate-setting body were unanimous.
While reducing the policy rate by half a percentage in June, the RBI had changed its stance from “accommodative” to “neutral”.
In August, the RBI also left its gross domestic product (GDP) growth estimate for 2025-26 (FY26) unchanged at
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