Overview
- The MPC lowered the repo rate to 5.25% with a neutral stance, adjusting the SDF to 5.00% and the MSF/Bank Rate to 5.50%.
- The RBI outlined liquidity steps including Rs 1 lakh crore of bond purchases and a $5 billion dollar–rupee swap to aid transmission and steady market conditions.
- Forecasts were revised with FY26 real GDP raised to about 7.3% and CPI cut to roughly 2% after October inflation hovered near 0.25% and Q2 GDP printed 8.2%.
- Reports differed on the vote tally, with several outlets citing a unanimous decision and at least one reporting a 5–1 split.
- Borrowers are expected to gain from lower EMIs as banks pass through the cut, though transmission and rupee dynamics near 90 per dollar remain key risks.