RBI Monetary Policy, Dec. 5 -- The Monetary Policy Committee (MPC) of the Reserve Bank of India (RBI) unanimously cut the repo rate by 25 basis points to 5.25%, while retaining its neutral stance. On Friday, December 5, Governor Sanjay Malhotra announced the move, calling attention to record-low inflation. He noted inflation at a benign 2.2% and growth at 8% for the first half of the year, describing the moment as a rare "Goldilocks" phase. RBI also raised its FY26 GDP growth estimate to 7.3% from 6.8% and lowered the FY26 CPI inflation projection to 2% from 2.6%.

The cut surprised many, as most experts expected the central bank to hold rates in December. Nine of 13 economists polled by Mint anticipated a pause, while four expected a 25-...