Overview
- RBI lowered the policy repo rate by 25 basis points to 5.25% with immediate effect, with the Monetary Policy Committee voting unanimously.
- Operating settings were maintained at CRR 3%, SDF 5.25% and MSF 5.75%, alongside planned liquidity steps including ₹1 lakh crore of OMO purchases and a $5 billion three‑year USD/INR swap in December.
- Equities reversed early weakness and rallied after the announcement, with Sensex trading above 85,500 and Nifty around 26,110, while bank stocks gained.
- Bullion prices surged on MCX following the decision, with silver up about ₹4,300 per kg and gold higher by roughly ₹750 per 10 grams.
- Consumers on floating‑rate loans are expected to see lower EMIs, as small‑cap activity continues with BCL planning a Bathinda land sale and a ~₹55 crore purchase of the remaining 25% of Svaksha by June 30, 2026, Paisalo scheduling a Dec 9 meeting on NCD private placement, and Integrated Industries hitting a 5% upper circuit ahead of a fund‑raising decision after strong Q2/H1 results.