Mumbai, Dec. 5 -- The MPC voted unanimously to reduce the rate under the liquidity adjustment facility, which also revised the standing deposit facility (SDF) rate to 5% and the marginal standing facility (MSF) and Bank Rate to 5.50%, while maintaining a neutral stance.

The RBI said the global economy is holding up better than expected, with trade flows normalising and uncertainty easing, though inflation remains uneven and markets volatile. In India, growth strengthened to a six-quarter high in Q2 FY26, supported by robust domestic demand, buoyant industry and services, lower crude prices, tax rationalisation, front-loaded government capex and supportive financial conditions. Early Q3 indicators remain firm on the back of strong rural d...