<h1>RBI MPC weighs 25 bps repo cut against inflation-targeting mandate under RBI Act Section 45ZB amid mixed signals</h1> The Reserve Bank of India's Monetary Policy Committee, meeting from December 3-5, 2025, faces a close call on whether to cut the repo rate by 25 basis points or maintain the current 5.5 per cent. Headline CPI inflation has stayed below the government's 2 per cent lower tolerance band for two months, aided by subdued food and fuel prices and GST rate cuts, creating legal room for easing. However, second-quarter GDP growth of 8.2 per cent and expectations of inflation rising toward 4 per cent in FY26-FY27 support holding rates. Experts anticipate neutral-to-dovish guidance, balancing growth support, liquidity assurance, and the inflation-targeting mandate.