RBI on Wednesday cut the repo rate by 25 bps to 5.25 per cent and kept its stance neutral, while announcing ₹1 trillion OMO purchases and a $5 billion USD/INR buy-sell swap this month
The most significant change in the December policy meeting was the reduction of the repo rate, the interest rate at which the RBI lends money to commercial banks
RBI will inject durable liquidity through a ₹1 trillion OMO purchase and a $5 billion dollar-rupee swap. Here is what OMOs are, how they work, and why they matter as the rupee weakens
RBI cuts the repo rate to 5.25%, revises FY26 GDP growth to 7.3%, and lowers its inflation forecast to 2%, signalling stronger momentum and easing food-price pressures
The RBI MPC revised its inflation forecast downward from 2.6 per cent to 2 per cent in the December meeting
Economists believe that the six-member committee will maintain the status quo on its stance at the December policy meeting
Sensex Today | Stock Market close, December 03, 2025: In the broader markets, Nifty MidCap and Nifty SmallCap, fell 0.98 per cent and 0.71 per cent, respectively.
After slashing repo rates for three consecutive months since February, the MPC kept the rate unchanged at 5.5 per cent since August
Interestingly, the US Federal Reserve's December 2025 meeting is a few days after the MPC's last scheduled review for 2025, in which it may cut rates further.
OMOs for liquidity infusion expected, say economists
Optimism building around potential announcement of an OMO calendar
India's GDP surged 8% in the first half, defying global headwinds, but weak nominal growth and slowing tax revenues raise fresh questions ahead of the MPC's policy review
In an event-heavy week ahead, stock markets' movement would highly depend on macroeconomic data announcements, global trends, RBI's interest rate decision and trading activity of foreign investors, analysts said. India's industrial production data for October 2025 will be released on December 1, an official statement said on Friday. Moreover, the November automobile sales data on Monday would also drive sentiments in the markets. "This week features a heavy data calendar that could influence volatility. Domestic focus will be on monthly auto sales, followed by the release of HSBC manufacturing, services, and composite PMI readings. The most crucial event will be the RBI's monetary policy on December 5, where commentary on inflation, growth, and the rate-cut outlook will be closely tracked," Ajit Mishra SVP, Research, Religare Broking Ltd, said. India's economy grew at a higher-than-expected 8.2 per cent - the fastest pace in six quarters - in July-September, as front-loading of ..
The one-year OIS rate has dropped to a month-low, with markets pricing in a 20-bps repo rate cut by February after RBI's governor signalled room for easing, though uncertainty over December's move per
Govt banks stay away from auction
An RBI economist accused SBI of plagiarism, saying its Ecowrap report copied RBI's monetary policy research; SBI rejected the claim, calling it 'sensational'
MPC members see room for easing as inflation cools, but hold rates steady to gauge the full impact of earlier policy steps
Reserve Bank Governor Sanjay Malhotra opined that there is room for a further rate cut and indicated it would be done at an opportune time to have a desirable impact, according to the minutes of the monetary policy committee (MPC) meeting released on Wednesday. The governor, along with five other members of the MPC, had voted for the status quo on the short-term benchmark lending rate at the meeting that concluded on October 1. During the meeting, Malhotra said the benign outlook for headline and core inflation as a result of the downward revision of projections opens up policy space to further support growth. "...even though there is a policy space to further cut the policy rate, I feel this is not the opportune time for the same, as it will not have the desirable impact. "Therefore, I vote to keep the policy repo rate unchanged at 5.50 per cent. The intent of policy, nevertheless, is to continue to facilitate growth-enabling conditions," he said. MPC member and RBI Deputy Govern
Analysts say large lenders like HDFC Bank, ICICI Bank and SBI have strong provisioning buffers, while those with unsecured or microfinance exposure may face higher impact
RBI's revised Basel III norms, effective April 2027, to lower capital needs for banks with reduced risk weights on MSME and housing loans, boosting CET1 ratios