Mumbai: The Reserve Bank of India’s Monetary Policy Committee (MPC) meeting is all set to be held between June 4-7. RBI Governor Sanjay Malhotra will be announcing the RBI MPC outcomes on Friday.
Ahead of the RBI MPC meeting June 2025, analysts are of the view that the central bank authority could decide for a third consecutive rate cut of 25 basis points as inflation continues to remain below the median target of 4 per cent. The experts are of the view that the RBI could go ahead with a repo rate cut to push growth amid continued global uncertainty triggered by the US tariff moves.
It is important to note that the RBI slashed the key interest rate (repo) by 25 bps each in February and April bringing it to 6 per cent.
“We do believe that given the rather benign inflation conditions and the liquidity situation which has been made very comfortable through various measures of the RBI, the MPC would go in for a 25 bps cut in the repo rate on the (June) 6th. The commentary on both growth and inflation will be important as there are expectations of revisions in their forecasts for both the parameters,” said Madan Sabnavis, Chief Economist, Bank of Baroda was quoted by PTI as saying.
Sabnavis expects that the central banking authority will deliberate on the global environment that could affect the Indian economy and the ongoing India-US tariff issue.
Aditi Nayar, Chief Economist, ICRA said PMC is likely to go ahead with rate cut as the CPI inflation is projected to trail 4 per cent for a large part of this fiscal.
“A 25 bps rate cut is expected next week, followed by two more cuts over the subsequent two policy reviews, taking the repo rate to 5.25 per cent by the end of the cycle,” Nayar said.
The Reserve Bank of India’s Monetary Policy Committee (MPC) is slated to meet in June 2025. Analysts widely predict a third consecutive 25 basis points repo rate cut, driven by low inflation (below the 4% target) and a need to stimulate economic growth amidst global uncertainty. Economy Business News – Personal Finance News, Share Market News, BSE/NSE News, Stock Exchange News Today
