Reserve Bank of India (RBI) Governor Sanjay Malhotra will deliver the Monetary Policy Committee’s (MPC’s) December policy outcome on Friday, followed by a press conference at noon. Both the statement and briefing will be streamed on the same platforms.
When is the MPC meeting?
The meeting is scheduled for December 3–5. The final MPC review of the 2025–26 financial year will be held from February 4–6, 2026.
Where to watch the Governor’s address?
Governor Sanjay Malhotra’s statement will be broadcast live at 10 AM on Friday via the RBI’s YouTube channel, its X handle, and the central bank’s official website.
Expectations From the MPC
Raoul Kapoor, Co-CEO of Andromeda Sales and Distribution said that he expects the MPC to announce a 25 basis points rate cut in the upcoming policy review.
"With inflation steadily moving within the RBI’s comfort range and multiple high-frequency indicators pointing towards a gradual economic softening, the environment is now conducive for a calibrated easing," he added.
According to him, at this juncture a rate cut would be "meaningful relief to borrowers—particularly those servicing big-ticket loans such as home loans and auto loans. It would help lower the overall cost of credit and, in turn, stimulate demand across key consumption-driven and investment-led sectors of the economy."
Also, a measured rate cut will signal confidence in the economic outlook while supporting growth momentum. As a leading loan distribution company, Andromeda believes that easing rates will strengthen credit flows, encourage capital formation, and contribute to a more robust and broad-based economic recovery, he added.
Praveen Sharma, the CEO of REA India (Housing.com) said, "Following the RBI’s decision to hold the rate in past meetings, the possibility of an immediate repo rate cut next month appears limited."
He said, "the cumulative 100 bps rate cuts this year have already eased the burden on homebuyers significantly. If economic and inflation indicators remain favourable next month, a minor repo rate reduction could be possible, which might in turn bring down home loan EMIs."
For the time being, the biggest positive is that the borrowing environment remains stable and highly supportive for buyers, he added.
Umesh Sharma, CIO–Debt at The Wealth Company Mutual Fund, said post-October data has made the outlook for a December cut harder to gauge. While soft inflation provides "policy space, resilient demand, strong credit growth, and tighter liquidity due to forex intervention complicate the decision." He added that global cues remain mixed, with uneven Fed communication and fiscal risks at home also in play. In his view, further cuts may have limited impact, and the MPC should maintain a dovish tone while assuring ample liquidity.
October 2025 MPC review
In October, the MPC unanimously voted to maintain the policy repo rate at 5.5 per cent and retain the neutral stance adopted in June. It also lifted its FY26 growth projection to 6.8 per cent and lowered the inflation forecast to 2.6 per cent.
Why does Repo Rate Matter?
The bi-monthly MPC review sets key interest rates and outlines inflation and growth projections. Movements in the repo rate, the rate at which the RBI lends to commercial banks, directly affect borrowers. A higher repo rate typically leads banks to raise lending rates, pushing up EMIs on home, car and personal loans. Conversely, rate cuts reduce borrowing costs but can also bring down returns on savings instruments and fixed deposits.