New Delhi, Dec. 5 -- The six members of the Monetary Policy Committee (MPC) of the Reserve Bank of India met with markets deeply divided on whether a rate cut was coming.

Inflation had fallen sharply to 0.25% in October 2025, strengthening the case for a reduction in the policy repo rate from 5.5%. But equally strong was the opposing argument: the rupee had touched a record low beyond 90 against the US dollar, and a cut risked weakening the currency further.

In the end, the MPC not only cut the repo rate by 25 basis points but did so unanimously-remarkable given how split economists were ahead of the review. Alongside the rate decision, the RBI updated its macro projections.

With inflation trending significantly lower, the central bank...