Quick Summary
The Reserve Bank of India (RBI) has reduced the policy repo rate by 25 basis points, bringing it down from 5.50% to 5.25%. The decision was taken during the 58th Monetary Policy Committee (MPC) meeting, held from December 3 to 5, 2025, under the chairmanship of RBI Governor Shri Sanjay Malhotra. The reduction comes after a unanimous vote by all MPC members, who assessed that the prevailing macroeconomic conditions and a sharp decline in inflation provided sufficient policy space for monetary
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FAQ :
The RBI has reduced the policy repo rate by 25 basis points to 5.25%.
The decision was made due to a sharp decline in inflation and prevailing macroeconomic conditions, which provided room for monetary easing.
Following the repo rate cut, the Standing Deposit Facility (SDF) rate is now 5.00%.
The RBI has decided to maintain a neutral monetary policy stance.
The minutes of the meeting will be released on December 19, 2025.
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