RBI likely to deliver rate cut in December as inflation eases, say experts

With inflation easing faster than expected and global uncertainties beginning to stabilise, economists and market experts believe that the Reserve Bank of India (RBI) is preparing to cut rates at its next Monetary Policy Committee (MPC) meeting scheduled for December 3-5, 2025.

The recently released minutes of the October policy meeting showed that the MPC unanimously decided to keep the repo rate unchanged at 5.5%, even as several members acknowledged there was room for monetary easing.

RBI Governor and external members had cited ongoing transmission of earlier cuts and uncertainty around global trade as reasons to wait before acting.

Dr. Nagesh Kumar, External Member of the MPC, said the Committee preferred to “wait for the transmission of the repo rate cuts in the past to be fully t