Introduction to RBI MPC Meeting
The Reserve Bank of India Governor Sanjay Malhotra-led Monetary Policy Committee (MPC) will announce its decision on the repo rate. The MPC meeting came on the heels of strong economic growth for the second quarter of the current fiscal year.
Economic Growth and Inflation
India’s GDP grew 8.2 per cent in the September quarter, beating forecasts and strengthening the case for maintaining policy support for growth. However, inflation has remained exceptionally soft, giving room to cut. The Consumer Price Index (CPI) print has stayed below the government’s mandated lower tolerance band of 2 per cent for two consecutive months.
Previous Rate Cuts
In 2025, RBI cut down almost 100 bps in the repo rate from 6.50 per cent to 5.50 per cent before hitting the pause button. In the last two MPC meeting of August and October, RBI kept the repo rate unchanged at 5.50 per cent.
Expectations from the Meeting
Several economists believe the central bank may choose caution this week, despite disinflationary trends. They argue that the current policy rate already delivers a healthy positive real rate, given expectations that inflation will settle above 4 per cent in the coming fiscal year. Madan Sabnavis, chief economist at Bank of Baroda, said the decision is “a close call", but added: “Under these conditions, we do not think that there should be any change in the policy rate."
Possibility of Another Rate Cut
Others see scope for one more cut, pointing to inflation running well below target and lingering risks to growth. A report from HDFC Bank said, “Given the lingering risks on growth (in H2) and inflation expected to remain well below 4 per cent until Q3 FY27, we see that there may still be a chance of another 25bps rate cut at the upcoming policy."
RBI MPC Announcement Details
Date and Time
The RBI governor will announce the upcoming repo rate decision on the last day of the 3-day meeting on Friday at 10 am.
Where to Watch
The announcement will be streamed on RBI’s official YouTube channel. Viewers can tune in via the central bank’s YouTube channel, official X account, and the RBI website. Moreover, you can also see live updates of RBI’s MPC announcement in the live blog on News18 platform.
Post-Policy Press Conference
At noon, the same platforms will also broadcast the post-policy press conference by Governor Malhotra, where he will address the media and answer questions about the decision.
Conclusion
The RBI MPC meeting is a crucial event that will determine the direction of the economy. With strong economic growth and low inflation, the decision on the repo rate will have a significant impact on the country’s financial landscape. As the RBI governor announces the decision, it will be interesting to see whether the central bank chooses to cut rates or maintain the status quo. One thing is certain, the decision will be closely watched by economists, investors, and the general public, and will have far-reaching consequences for the Indian economy.
