Archive · 3 Dec 2025
RBI Considers Rate Cut Amid Economic Debate
The Reserve Bank of India (RBI) is having a meeting to decide whether to lower interest rates or keep them the same.
Some economists think the RBI should cut rates because inflation is very low, which means prices are not rising much.
Others think the RBI should keep rates the same because the economy is growing strongly, which is good news.
The RBI has not changed the repo rate, which is the rate at which banks borrow money from the RBI, since August 2025.
The stock market in India has been going down recently, and this decision could affect how it does in the future.
The RBI's decision will be announced on December 5, 2025.
The RBI's Monetary Policy Committee (MPC) is meeting to decide on interest rates, with the decision to be announced on December 5, 2025.
Economists are divided on whether the RBI should cut rates or maintain the current repo rate of 5.5%.
Strong GDP growth of 8.2% in Q2 FY26 and low CPI inflation of 0.25% in October 2025 are key factors in the debate.
Some economists, like those at Nuvama and Crisil, argue for a rate cut due to low inflation and the need for an insurance rate cut amid global uncertainty.
Others, like Aditi Gupta from Bank of Baroda, suggest maintaining the current rates due to strong economic growth and resilient demand.
- Who
- Reserve Bank of India (RBI) and economists
- What
- Debate on whether to cut interest rates or maintain the current repo rate
- When
- RBI MPC meeting starts on December 3, 2025, with the decision announced on December 5, 2025
- Where
- India
- Why
- Strong GDP growth of 8.2% and low inflation of 0.25% in October 2025
- RBI MPC Meeting Start Date
- December 3, 2025
- Policy Announcement Date
- December 5, 2025
- Current Repo Rate
- 5.5%
- Q2 GDP Growth
- 8.2%
- CPI Inflation in October 2025
- 0.25%
- Nominal GDP Growth
- Below 9%
- BSE Sensex Closing
- 84,879.09 (down 259.18 points)
- Nifty 50 Closing
- 25,930.30 (down 101.90 points)
- Total Market Capitalisation
- ₹472.59 lakh crore
- Foreign Investor Outflow
- ₹3,642 crore
- Domestic Institutional Investor Inflow
- ₹4,646 crore
Sources
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