Neutral policy gives flexibility to RBI to act amid evolving conditions: Guv

The RBI on Friday released the minutes of the meeting of the Monetary Policy Committee (MPC) held on December 3-5, 2025

- OUR CORRESPONDENT

RBI Governor Sanjay Malhotra has said that a neutral monetary policy stance would give flexibility to the central bank to act according to the evolving macroeconomic conditions while voting for a 25 basis points cut in repo rate, along with five other MPC members.

The Reserve Bank of India (RBI) on Friday released the minutes of the meeting of the Monetary Policy Committee (MPC) held on December 3-5, 2025.

The RBI reduced the short-term lending rate (repo) by 25 bps to 5.25 per cent, following the status quo on the rate in the two preceding MPC meetings.

While five members voted for continuing the neutral stance to enable the central bank to take data-driven policy action, one member, however, advocated for changing it to ‘accommodative, according to the minutes.