New Delhi, Nov. 28 -- The Reserve Bank of India (RBI) is set to announce its monetary policy next week amidst the backdrop of benign inflation, stable system liquidity and robust macroeconomic conditions. The meeting of the RBI Governor Sanjay Malhotra-headed Monetary Policy Committee (MPC) is scheduled from December 3 to 5, and the repo rate decision will be announced on December 5.

The central bank is widely expected to cut the repo rate by 25 basis points (bps) to 5.25% from 5.5% at present. The RBI has held rates since August, after a cumulative 100 bps of cuts in the first half of the year.

A sharp fall in food prices and GST rate cuts have driven consumer inflation to a record low of 0.25% in October, giving the central bank room ...