Decision will be taken tomorrow… Will RBI reduce the repo rate? Know the opinion of experts

By Team Sarkari Aadmi

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RBI MPC Meeting: The meeting of the Monetary Policy Committee of the Reserve Bank started on December 3, 2025. Its results will come on Friday. Reserve Bank of India (RBI) Governor Sanjay Malhotra will announce the repo rate after the end of the Monetary Policy Committee (MPC) meeting on Friday, for which the entire country is waiting.

At present the repo rate is 5.5 percent. If the repo rate is low, the loan will be cheaper, due to which the EMI will have to be paid less. Earlier, due to low inflation, a cut in the repo rate was expected, but considering the new GDP data and the fall in the rupee, it is now believed that the decision regarding the repo rate will not be easy for the RBI this time.

JM Financial report

RBI Governor Sanjay Malhotra will announce the rate on December 5 at 10 am. Domestic brokerage firm JM Financial said in its report, “We expect RBI to increase its growth forecast for FY26 by at least 20 basis points to 7 percent and reduce inflation forecast by 40 basis points to 2.2 percent.”

The rate cut at this time will boost the expected slower growth in the second half of FY26, but it also poses a risk of further decline in the rupee. If a lenient approach is not adopted with rate cuts, bond yields will fall further. In such a situation, RBI can adopt a middle path by maintaining the current situation and giving guidance on policy support in the coming months. Meanwhile, some analysts believe that a 25 basis point interest rate cut could support the economy at a time when price pressure is low.

What does Yes Bank have to say?

Yes Bank has said in its report that it is expected from RBI that RBI will not make any change in the repo rate and will maintain it at 5.5 percent. The report emphasized that the Central Bank is likely to remain on pause as the scope for cuts is gradually decreasing.

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