RBI monetary policy, Dec. 5 -- The Monetary Policy Committee (MPC) of the Reserve Bank of India (RBI) decided unanimously to cut the repo rate by 25 basis points to 5.25%, maintaining a neutral stance. On Friday, December 5, Governor Sanjay Malhotra announced a 25-basis-point rate cut, highlighting record-low inflation.

The rate cut by the RBI MPC came as a surprise for many, as a majority of experts expected the central bank to maintain the status quo on rates in December. Nine out of 13 economists polled by Mint expected a pause in the repo rate, while four had anticipated a 25-basis point cut.

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Governor Malhotra stated that the MPC unanimously decided to cut the repo rate by 25 basis p...