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Benign inflation, emerging slack delivered Dec cut
Mint Chennai
|December 20, 2025
FROM PAGE 16
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The RBI had cut the repo rate by 25 bps to 5.25%.
(BLOOMBERG)
than-anticipated moderation in CPI headline inflation.
India’s retail inflation, as measured by the Consumer Price Index, stood at 0.7% in November, up from 0.25% in October. Under the flexible inflation framework, the Monetary Policy Committee (MPC) targets retail inflation at 4% with a tolerance band of +/-2%.
“Therefore, even if the MPC members traditionally consider a whole host of factors in their decisions, but when the prevailing inflation and its forecast as is low as it is currently-it alone ought to get a larger weight in the monetary policy deliberations,” said Gupta.
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