The Reserve Bank of India’s Monetary Policy Committee (MPC), under Governor Sanjay Malhotra, has concluded its December 2025 review with a measured yet anticipated step forward. In line with market expectations, the repo rate has been reduced by 25 basis points to 5.25%, marking the fourth cut in the easing cycle this year (totaling 125 bps). This adjustment reflects the MPC’s confidence in sustained disinflation, while maintaining a neutral policy stance to support robust economic momentum.

Ashwani Dhanawat, Executive Director & Chief Investment Officer, Shriram General Insurance