RBI Rate cut, Dec. 8 -- The Reserve Bank of India delivered a 25 bps rate cut, lowering the repo rate to 5.25% in a unanimous decision that reflected unusual confidence in the disinflation trend. With CPI inflation now projected at just 2% for FY26, brokerages believe the central bank has moved decisively into a pro-growth mode-raising the question: Is another rate cut coming in 2026?

The RBI held its stance at neutral (5:1 vote), while simultaneously announcing aggressive liquidity support through Rs.1 trillion of OMOs and USD 5 billion in 3-year buy-sell swaps.

But the real debate brewing in the market is whether today's cut marks the beginning of a cycle-or the last move for now.

Most research firms interpreted the policy as clearly...