RBI May Cut Interest Rate by 25 bps on Friday

The RBI may trim the benchmark lending rate by 25 bps in its forthcoming monetary policy meeting, as inflationary pressures are subdued, though some experts believe the central bank is likely to keep the rate unchanged in the backdrop of better-than-expected GDP growth of 8.2 per cent in the second quarter.

- Press Trust Of India

The consumer price index (CPI) based headline retail inflation is ruling below the 2 per cent lower band mandated by the government for the last two months.

Some experts, however, believe that the RBI may continue with the pause on interest rates as economic growth has picked up, sustained by fiscal consolidation, targeted public investment, and various reforms, such as the GST rate cut.

The Monetary Policy Committee meeting is scheduled from December 3-5, 2025.

RBI Governor Sanjay Malhotra is scheduled to announce the decision of rate-setting panel on December 5.

The central bank started its rate-easing cycle in February last year. It has cumulatively reduced the repo rate by 100 basis points in successive policy announcements to 5.5 per cent, before hitting the pause button in August.