The decision will be made tomorrow... Will the RBI reduce the repo rate? Learn what experts say.
- bySherya
- 04 Dec, 2025
RBI MPC Meeting: The results of the meeting of the Monetary Policy Committee of the Reserve Bank are going to come tomorrow, which will reveal whether the repo rate will be reduced this time or it will be kept stable.

RBI MPC Meeting: The Reserve Bank of India's Monetary Policy Committee meeting began on December 3, 2025. Its results will be announced on Friday. Reserve Bank of India (RBI) Governor Sanjay Malhotra will announce the repo rate, a decision the entire country is eagerly awaiting, after the Monetary Policy Committee (MPC) meeting concludes on Friday.
Currently, the repo rate is 5.5%. Lowering the repo rate will make loans cheaper, resulting in lower EMIs. Previously, a repo rate cut was expected due to lower inflation, but given the latest GDP data and the rupee's decline, it is now believed that the RBI's decision on the repo rate will be difficult this time.
JM Financial report
RBI Governor Sanjay Malhotra will announce the rate on December 5 at 10 am. Domestic brokerage firm JM Financial said in its report, "We expect the RBI to raise its growth forecast for FY26 by at least 20 basis points to 7 percent and reduce its inflation forecast by 40 basis points to 2.2 percent."
A rate cut at this time will boost expected slower growth in the second half of FY26, but it also risks further depreciation of the rupee. If a rate cut is not accompanied by a dovish stance, bond yields will fall further. In such a scenario, the RBI may adopt a middle ground by maintaining the current situation and providing guidance on policy support in the coming months. Meanwhile, some analysts believe that a 25 basis point interest rate cut could provide support to the economy at a time when price pressures are low.
What does Yes Bank have to say?
Yes Bank stated in its report that it expects the RBI to keep the repo rate unchanged at 5.5%. The report emphasized that the central bank is likely to remain on hold as the scope for further rate cuts is gradually diminishing.



