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Informist, Friday, Dec. 19, 2025

MUMBAI - Following are the highlights of the minutes of the Dec. 3-5 meeting of the Reserve Bank of India's Monetary Policy Committee, released by the central bank on Friday:

SANJAY MALHOTRA

* Trade tension, policy risks continue to temper growth outlook
* Financial markets circumspect on divergent policies of central banks
* Economic activity remains resilient in Q3
* Data shows deceleration in pace of growth in H2 vs H1
* FY26 GDP seen over 7% as local prospects offset external woes
* Demand pressures to remain low in next 3 quarters
* 25 bps rate cut to stimulate demand, be growth-supportive
* Neutral stance gives needed flexibility to remain data driven
* Neutral stance gives flexibility to act as per economy needs

POONAM GUPTA

* High frequency indicators for Q3 seem to be holding up
* CPI moderation must get larger weight in MPC deliberations
* Any future course of policy action to be totally data dependent
* Most indicators show economy not showing signs of overheating
* Can interpret data as indicating slack in economy

INDRANIL BHATTACHARYYA

* Local factors aid growth but trade risks acting as a dampener

* Data shows economy holding course Q3; deceleration in pace ahead
* Benign inflation scenario likely to prolong
* MPC needs to support growth, particularly when seen decelerating

NAGESH KUMAR
* Case for demand stimulus to preserve growth momentum in H2

SAUGATA BHATTACHARYA
* 'Underlying' inflation may undershoot CPI aim for many months
* Little to signal risk of possible overheating of capacity
* Contraction in Oct goods export data is concerning
* Trade balance will need to be closely monitored
* Trade uncertainties weighing on few economic metrics
* Time for CPI to meet aim may be more than GDP to potential
* May need relative overweight on inflation at this point
* Data shows transmission has been satisfactory, broad-based
* More policy transmission likely on RBI's liquidity steps
* Apt risk management action is to err in favour of policy easing
* Risk averse to criticism of being behind the curve
* Real rate may be tad more restrictive than warranted
* Priority is to overweight growth in balance of many goals
* Rate cuts moved policy from mildly restrictive to balanced
* Believe policy rate now consistent with econ stability
* Vote rate cut with caveat of next step being data based
* Prudent to keep neutral stance amid external uncertainty

RAM SINGH

* Monetary policy easing warranted on both inflation, growth fronts
* Real policy rate over 3 quarters to be above growth-supportive rate

* Growth above 7.5% realistic without building up price pressures
* Should adopt accommodative stance on dormancy in price momentum
* Should adopt accommodative stance to support growth momentum

End

Compiled by Vinodini Yadav

Filed by Ashish Shirke

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