EMI of your loan is going to reduce, RBI may cut repo rate for the fourth time; final decision tomorrow

RBI MPC Meeting: The meeting of the Monetary-Policy Committee of the Reserve Bank of India (RBI), the RBI MPC meeting started on 3rd December and will continue till tomorrow i.e. 5th December. The results will be announced by RBI Governor Sanjay Malhotra tomorrow at around 10 am. Car and home loan borrowers are now eagerly waiting for tomorrow’s decision of MPC. Now it remains to be seen whether RBI changes the repo rate tomorrow or keeps the repo rate constant at 5.50% like before.

According to the report of Financial Express, analysts see scope for cutting interest rates. CRISIL Chief Economist Dharamkirti Joshi said that we expect a cut in the repo rate by 25 basis points in December. Although growth remains strong, the significant decline in retail inflation in October has created additional scope for adjustment.

RBI has cut interest rates thrice

RBI has cut the repo rate 3 times so far this year. RBI had cut the repo rate by 0.25% in February 2025, after which the repo rate was reduced from 6.50% to 6.25%. In April 2025, the repo rate was again reduced by 0.25%, after which the repo rate was reduced from 6.25% to 6%. At the same time, in June 2025, RBI had reduced the repo rate by 0.50%, after which the repo rate was reduced from 6% to 5.50%.

RBI did not make any cut in repo rate in August 2025. Even in October, RBI repo rate There has been no cut in the repo rate and the repo rate has been kept constant at 5.50 percent. In such a situation, now it has to be seen whether RBI changes the repo rate in December 2025 or not.

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Demand for reduction in repo rate by 25-50 bps

Lakshmi Venkataraman Venkatesan, founder of Bharatiya Yuva Shakti Trust, said that in the last one year the current repo rate has come down significantly from 5.5%, 6.5%. Inflation in October was just 0.25%, its lowest level in a decade, and wholesale prices fell 1.21%. Nearly 70% of loans to micro and small businesses are directly linked to the repo rate, so lower rates immediately reduce their borrowing costs, provided banks do not increase margins to finalize the rate.