RBI Monetary Policy Live Updates: Will Governor Malhotra Deliver Repo Rate Cut?

The Reserve Bank of India Monetary Policy Committee in its previous meeting in October kept the repo rate unchanged at 5.5% for the second consecutive time. The decision was made unanimously by the MPC committee, which has also unanimously decided to maintain a 'neutral' stance.

Five Key Highlights:

• RBI retained 'neutral' stance, with most of the commentary from the governor Sanjay Malhotra alluding to lower inflation.

• The Reserve Bank of India lowered its inflation project for FY26 at 2.6% vs 3.1% earlier, with Sanjay Malhotra stating, "There has been a singificant moderation in inflation."

• The inflation project of Q2FY26 and Q3FY26 stands at 1.8% while Q4FY26 stands at 4%.

• Real GDP growth for FY26 has been revised upward to 6.8% from the earlier estimate of 6.5%, which indicates stronger-than-expected economic performance.

• RBI has proposed a series of measures to improve credit flow, ease costs and expanding lending flexibility.

The Reserve Bank of India’s last interest rate decision of the year is proving to be one of its trickiest, with policymakers having to weigh up record low inflation against a plunging currency and 8%-plus economic growth.

A majority of the 44 economists surveyed by Bloomberg expect the central bank to cut its benchmark repurchase rate by a quarter point to 5.25% on Friday given inflation is well below the 4% target.

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The Monetary Policy Committee or MPC of the Reserve Bank of India, chaired by Governor Sanjay Malhotra, began its three-day meeting on Wednesday, Dec. 3, to discuss the fifth monetary policy for financial year 2026. Key areas of the decision-making process included interest rates, inflation and growth outlook.

Malhotra will announce the decision of the six-member MPC at 10:00 a.m.