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Repo Rate Cut: It is believed that RBI may once again give the gift of cutting the repo rate in December. Union Minister Piyush Goyal has said that all eyes are on RBI and there is full hope that the repo rate can be cut once again.
New Delhi. The year 2025 has brought relief for the common man on many fronts. After the cut in income tax, the government made more than 300 essential goods cheaper with the biggest reform in GST. Now another good news is awaited in the last month of the year. Union Commerce Minister Piyush Goyal has also given a clear indication that now all eyes are on the Reserve Bank and it is fully expected that the common man will get another good news next month.
Piyush Goyal has given this statement before the meeting of the Monetary Policy Committee of the Reserve Bank to be held in December. He said in an event organized in Delhi that retail inflation is the lowest in 10 years. This has been the lowest level of inflation in any decade since independence and throughout the year 2025, inflation will remain within the range set by the Reserve Bank. Obviously, now everyone’s eyes are raised towards the Reserve Bank and everyone is hopeful that after the MPC meeting to be held in December, interest rates may become cheaper once again.
Inflation created opportunity for cheap interest
Piyush Goyal said that retail inflation is currently at a historically low level, creating an opportunity for another cut in the repo rate. The retail inflation figure in October was around 0.25 percent, in which food inflation rates have also come down significantly. The average rate of retail inflation in the first half of the current financial year 2026 has been around 2.22 percent. It kept hovering within the range of 4 percent fixed by the Reserve Bank.
RBI itself had predicted
The Reserve Bank had earlier reduced the estimate of retail inflation figures for the current financial year. Earlier it was 3.1 percent and later it was reduced to 2.6 percent. However, despite reducing the inflation figures, RBI has warned to be cautious about the fluctuations in the global energy and food markets. This means that even though inflation is under control now, it may once again pose a challenge in the future.
How cheap will the loan be?
According to a survey conducted by news agency Reuters, most economists have predicted a cut in interest rates in the December MPC meeting. He says that in the repo rate decisions coming on December 5, there may be an interest rate cut of 0.25 percent. Currently the repo rate is 5.50 percent, which will reduce to 5.25 percent. With this, all types of retail loans including home loan, personal loan and auto loan will become cheaper.
The Governor had also indicated
Earlier, Reserve Bank Governor Sanjay Malhotra had also hinted about cutting interest rates. He had said that from the recent data, there is every possibility that once again the gift of reduction in repo rate may be given. There has been no cut in the repo rate since August. However, RBI has already reduced the rate by 1 percent in the first half of this year. In the last meeting held in October, the repo rate was maintained at 5.5 percent.
Increasing role of banks
Piyush Goyal said that there are many challenges going on on the business front, in such a situation the role of banks is becoming even more important. India is currently trying to unite its trading partners in the world and build trust among them. India is making new business friends for itself through free trade agreements. Talks with America, EU and Oman have not yet reached the final stage. In such a situation, the role of cooperation of banks becomes more important. It is noteworthy that the MPC meeting of RBI will run from 3 to 5 December.
