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RBI begins key policy meet; market eyes possible third straight repo rate cut

| @indiablooms | Jun 05, 2025, at 12:18 am

Mumbai: The Reserve Bank of India's (RBI) Monetary Policy Committee (MPC) began its three-day deliberation today, with widespread anticipation that the meeting could lead to another reduction in the repo rate, currently at 6%.

If implemented, this would mark the third consecutive rate cut.

Market participants are forecasting a reduction in the range of 25 to 50 basis points, driven by a consistent decline in inflation and increasing concerns over slowing economic momentum.

A cut in the repo rate would effectively lower borrowing costs for banks, businesses, and consumers, potentially stimulating credit demand and economic activity.

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