India RBI Interest rate Decision

The Reserve Bank of India (RBI) lowered its key repo rate by 25 bps to 5.25% during its December 2025 meeting and maintained a neutral stance, in line with market expectations. The decision comes amid easing inflation and robust GDP growth, despite a weakening rupee. The central bank has now cut rates by a total of 125 bps since the beginning of the year, bringing the repo rate to its lowest level since July 2022.

USA Fed Interest rate Decision

The Federal Reserve cut the federal funds rate by 25 bps to a range of 3.5%–3.75% in its December 2025 meeting, following similar reductions in September and October, and in line with expectations. This brings borrowing costs to their lowest level since 2022. Meanwhile, policymakers left their projections for the federal funds rate unchanged from September, signaling only one 25bps cut in 2026. On the GDP front, the Fed revised its growth forecasts higher for 2025 (1.7% vs 1.6%) and 2026 (2.3% vs 1.8%). PCE inflation is now expected to be slightly lower this year at 2.9% (vs 3.0%) and next year at 2.4% (vs 2.6%). Forecasts for the unemployment rate were left unchanged at 4.5% for 2025 and 4.4% for 2026.

Bank of Japan Interest rate Decision

The Bank of Japan kept its benchmark short-term rate unchanged at 0.5% in October 2025, maintaining borrowing costs at their highest level since 2008 and extending a pause since the last hike in January. The decision, in line with market expectations, was approved by a 7-2 vote, with board members Naoki Tamura and Hajime Takata again proposing a rise to 0.75%, as they had in September. The central bank reaffirmed its commitment to continue raising borrowing costs.