RBI Governor Sees Scope To Cut Policy Rate In December

India's recent macroeconomic data reinforces the case for a repo rate cut in the December monetary policy, Reserve Bank of India Governor Sanjay Malhotra said on Monday, triggering a drop in the bond yield.

RBI Governor Sanjay Malhotra. (Reuters)

“The monetary policy committee had signaled the scope of further rate cuts in October and the latest data and macro indicators reinforce the belief that there is definitely scope,” Malhotra told Zee Business in an interview on Monday. “It is up to the MPC to decide on rates in the coming policy.” India's benchmark 10-year bond yield fell four basis points to 6.48% after the comments.

India's retail inflation rate—measured by the consumer price index—rose 0.25% in October for the lowest print since the current CPI series began in 2012. The markets expect the RBI to opt for a repo rate cut during its monetary policy review on 5 December 2025. The central bank has lowered the benchmark rate by 100 basis points since February but held steady in October.