Archive · 30 Nov 2025
RBI Rate Cut Debate Heats Up
The Reserve Bank of India (RBI) is deciding whether to lower interest rates or keep them the same.
Some experts think they should cut rates by a small amount to help the economy grow, while others believe they should wait because the economy is already doing well.
The RBI will meet in early December to make this decision.
They might also use other tools to manage money in the economy, like buying and selling government bonds.
This decision will affect how much people pay for loans and how much they earn on savings.
The RBI will also consider how to communicate their plans clearly to the market.
The RBI is considering whether to cut the repo rate by 25 basis points or pause the cut due to strong GDP growth.
Economists are divided, with 8 out of 15 polled expecting no rate cut and 7 anticipating a 25 basis points reduction.
The RBI may use liquidity measures like OMOs to manage yields and support market sentiment.
Strong GDP data and the need to preserve policy space are cited by those leaning towards a pause.
Subdued inflation and slowing nominal growth are arguments for those advocating a rate cut.
- Who
- Reserve Bank of India (RBI) and Economists
- What
- Debate on whether to cut repo rate or pause
- When
- December 2025
- Where
- India
- Why
- Strong GDP growth and subdued inflation
- RBI MPC Meeting Dates
- December 3-5, 2025
- Expected Repo Rate Cut
- 25 basis points
- Current Repo Rate
- 5.5%
- Expected Repo Rate After Cut
- 5.25%
- Q2 GDP Growth
- Strong
- Inflation Rate
- Subdued
- OMO Calendar
- Expected for liquidity management
- Bank Holidays in December 2025
- 18 days
Sources
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