RBI’s three-day monetary policy meeting begins today, policy outcome on Friday

The three-day monetary policy committee (MPC) meeting of the Reserve Bank of India (RBI) begins in Mumbai on Wednesday.

MPC members will hold detailed discussions on the future course of monetary policy, taking into account the latest data on GDP growth and inflation. The policy result will be announced by RBI Governor Sanjay Malhotra at 10 am on Friday.

The meeting comes at a time when India’s economic performance remains strong and inflation has fallen sharply. The GDP figures stood at 8.2 percent in the July-September period, the second quarter of the current fiscal year 2025-26.

At the same time, inflation reached record lows. According to the Ministry of Statistics and Program Implementation (MoSPI), India’s retail inflation has fallen sharply to 0.25 per cent in October 2025.

According to the report of Bank of Baroda, the central bank is expected to keep the repo rate unchanged in this policy.
“We expect the RBI to keep the repo rate constant at 5.50 percent in December’25. The stance is also expected to be kept at neutral level,” the report said. It was said.

The report highlighted that India’s economic growth remained robust and GDP growth in the second quarter of FY26 was 8.2 per cent, exceeding market expectations. Regarding inflation, the report noted that price pressures have eased significantly, with CPI inflation falling to a series of lows in October 2025, mainly due to the sustained decline in food prices. Inflation is expected to moderate further and may even fall below the RBI’s own forecasts, he added.

Although this leaves room for a possible rate cut, the report said the RBI is likely to remain cautious in its upcoming policy review, especially as economic growth remains strong.

Sharing his views on the current situation, CareEdge Ratings MD and Group CEO Mehul Pandya told ANI that both strong GDP growth and multi-year low inflation create opposing signals for interest rate decisions.

“These two developments (continued strong GDP growth and multi-year low inflation levels) are mutually opposing forces from an interest rate perspective. Central banks generally do not tend to lower interest rates during periods of strong economic activity represented by GDP growth. At the same time, central banks often respond to a low inflation environment by lowering interest rates.”

The MPC meeting is scheduled to be held from December 3 to 5 and the final policy decision will be announced by RBI Governor Sanjay Malhotra at 10 am on December 5.

(This story has not been edited by DNA staff and is published from ANI)