While the RBI Monetary Policy Committee is likely to keep the repo rate unchanged, the central bank may announce a cut in the cash reserve ratio. Here's what it means, and the impact it can have.

Banking stocks, including HDFC Bank and SBI, rose on December 4, driven by hopes of a supportive RBI monetary policy. The Nifty Bank index gained nearly 1%, with expectations of a CRR cut boosting profitability amid concerns over India’s slowing economic growth.

In the last MPC meeting held in October, the central bank maintained the policy repo rate at 6.5 per cent for the 10th consecutive time.

India's CPI inflation stood at 6.2 per cent as of October, as nation eyes the upcoming monetary policy announcement on December 6. Check details to find out when and where to watch the policy

The repo rate, which determines borrowing costs across the economy, has been held steady at 6.5% for nine consecutive meetings.

Though most analysts expect the RBI's rate-setting panel to keep the key repo rate unchanged, the RBI governor faces a challenge to keep inflation under check and slightly provide liquidity stimulus to growth.

The RBI is expected to maintain current policy rates in the upcoming MPC meeting, signalling potential future cuts. With GDP growth slowing and inflation mixed, careful adjustments are necessary for stability,

In the RBI MPC meet in October, the repo rate was unchanged at 6.5%, shifting the stance to 'neutral,' and holding other key rates steady.