ARS Insights, December 2025. Practical research thinking for business owners, in plain language.
1. The RBI cut the repo rate to 5.25%
The Reserve Bank of India’s Monetary Policy Committee cut the repo rate by 25 basis points, from 5.5% to 5.25%, in its December 2025 meeting. It also raised its growth forecast for 2025-26 to 7.3% from 6.8%.
2. What a rate cut does and does not do
Why it matters: A lower repo rate can make new loans cheaper, but banks pass it on at different speeds, and many business loans are priced against their own benchmarks. Lower rates can also lift demand for homes, vehicles and durables over time.
What to measure: the actual interest rate on each of your loans, the date it resets, and how much of your monthly cash goes to interest. Then ask your lender in writing whether the cut applies to you.
3. One question for your business this month
If borrowing became cheaper, would your customers buy more, or would only your costs fall? A short demand survey tells you which of the two you should plan for.
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ARS Market Research Services Pvt. Ltd., Chennai. arsmrs.in
Sources: Business Standard and Moneylife reports on the RBI Monetary Policy Committee decision, December 2025.