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 easing.
With the repo rate cut:
- The Standing Deposit Facility (SDF) rate now stands at 5.00%
- The Marginal Standing Facility (MSF) rate and Bank Rate have been adjusted to 5.50%
The MPC also decided to maintain a neutral stance, signalling flexibility for future policy shifts depending on inflation and growth trends.
This repo rate cut marks the RBI's continued effort to balance financial stability with growth support, especially as inflation trends at multi-year lows and economic momentum remains broadly resilient.
The minutes of the meeting will be released on December 19, 2025, and the next MPC meeting is scheduled from February 4 to 6, 2026.
Official copy of the notification has been attached
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