RBI Monetary Policy Highlights

Mumbai, Dec 5 (PTI) Following are the highlights of the bi-monthly monetary policy announced by Reserve Bank Governor Sanjay Malhotra after the Monetary Policy Committee (MPC) meeting on Friday:

* Repo rate reduced by 25bps to 5.25 pc;

* 4th rate cut, totalling 125 bps, since February 2025;

* MPC also decided to continue with neutral stance;

* GDP growth forecast for FY26 raised to 7.3 pc from 6.8 pc;

* Inflation estimates lowered to 2 pc from 2.6 pc;

* Policy space exists to support growth momentum;

* High-frequency indicators suggest economic activity holding up in Q3;

* RBI to conduct OMO purchases of G-secs of Rs 1 lakh cr;

* RBI will also conduct 3-year USD/INR buy-sell swap of USD 5 bn;

* Asset quality, profitability of banks continue to remain robust;

* Guv says committed to provide sufficient durable liquidity to banking system;

* CAD expected to remain modest during 2025-26;

* As on Nov 28, forex reserves stood at USD 686.2 bn;

* Next MPC scheduled during Feb 4 to 6, 2026.