The Reserve Bank of India (RBI) Governor, Shri Sanjay Malhotra, said on Friday, 5 December, 2025 that the Monetary Policy Committee (MPC) has decided to cut repo rate by 25 basis points to 5.25%.
| Policy Repo Rate | 5.25% |
|---|---|
| Standing Deposit Facility Rate | 5.00% |
| Marginal Standing Facility Rate | 5.50% |
| Bank Rate | 5.50% |
| Fixed Reverse Repo Rate | 3.35% |
| CRR | 3.00% |
| SLR | 18.00% |
| Base Rate | 8.35% – 10.00% |
|---|---|
| MCLR (Overnight) | 7.80% – 7.95% |
| Savings Deposit Rate | 2.50% |
| Term Deposit Rate > 1 Year | 5.85% – 6.60% |
The RBI governor Sanjay Malhotra says that owing to the repo rate cut by 1% this year, banks have reduced the interest rates on fixed deposits by 105 basis points (bp) since February 2025.
The RBI governor also revised downwards the country’s inflation projections for FY26 to 2% from 2.6% made earlier. The RBI governor said that the MPC has decided to increase the country’s GDP forecasts for FY26 to 7.3% from 6.8% made earlier. The RBI governor Sanjay Malhotra says India’s infation fell to 0.3% in October 2025. India’s forex reserve stands “healthy” at USD 686 billion.
The Reserve Bank has decided to conduct OMO (Open Market Operations) purchases of government securities of Rs 1 lakh crore and a three-year dollar-rupee buy-sell swap of 5 billion US dollars this month in December to inject further durable liquidity into the system.
The STF (Standing Deposit Facility) rate under the LAF (Liquidity Adjustment Facility) shall stand adjusted to 5% and the MSF (Marginal Standing Facility) and bank rate to 5.5%.
RBI MPC Meeting Live: CPI Inflation projections
| Period | Now | Earlier |
|---|---|---|
| FY26 | 2.0% | 2.6% |
| Q3FY26 | 0.6% | 1.8% |
| Q4FY26 | 2.9% | 4.0% |
| Q1FY27 | 3.9% | 4.5% |
| Q2FY27 | 4.0% | — |
RBI MPC Meeting Live Updates: GDP growth projections
| Period | Now | Earlier |
|---|---|---|
| FY26 | 7.3% | 6.8% |
| Q3FY26 | 7.0% | 6.4% |
| Q4FY26 | 6.5% | 6.2% |
| Q1FY27 | 6.7% | 6.4% |
| Q2FY27 | 6.8% | — |
