RBI Monetary Policy Dec 2025 explained in Telugu | Goldilocks Economy Explained

RBI Monetary Policy Meeting – 5 December 2025 | Final Policy of 2025
The Reserve Bank of India (RBI) has cut the repo rate by 25 bps, bringing it down from 5.50% to 5.25% — the 4th consecutive rate cut of 2025 (total 125 bps). The MPC retained a Neutral stance, signalling a data-driven approach ahead.

India has now officially entered a “Goldilocks Economy” — high growth + ultra-low inflation, enabling continued monetary easing.

🔍 Key Highlights Covered in This Video
✔ Repo Rate Cut 2025 Explained

Repo rate reduced to 5.25%

58th MPC meeting chaired by Governor Sanjay Malhotra

Unanimous decision of all 6 MPC members

✔ Impact of Repo Rate Change (Simple Explained)

Cheaper loans → Higher spending

Boost to SMEs, agriculture, housing

Lower inflation → stronger macro stability

✔ India’s Goldilocks Phase

GDP growth Q2 FY26: 8.2% (fastest in 6 quarters)

CPI inflation Oct 2025: 0.25% (historic low)

Strong domestic demand + services growth

✔ Revised GDP Outlook FY26

Upgraded to 7.3% (from 6.8%)

Rural revival, private investment, manufacturing momentum

✔ Inflation Outlook FY26 & FY27

FY26: 2.0% CPI forecast

FY27: 3.9%–4.0%, aligning with RBI target

✔ Liquidity Measures Announced

₹1 lakh crore OMO purchases – long-term liquidity, lower yields

$5 billion USD/INR buy–sell swap – stabilises forex market

📘 UPSC Booster Section

This video also covers:

What is Monetary Policy?

Expansionary vs Contractionary Policy

Instruments of Monetary Policy (Repo, Reverse Repo, CRR, SLR, MSF, OMO)

What is MPC? Composition, voting rules, meeting norms

Perfect for UPSC Prelims, Mains GS-3 (Economy), RBI Grade-B, and all competitive exams.

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