RBI form Monetary Policy Committee at 10 am today

Get Updates in Social Media Platforms

The Reserve Bank of India (RBI), under the leadership of Governor Sanjay Malhotra, is set to announce its monetary policy decisions today, June 6, 2025, at 10:00 AM IST. This announcement follows the conclusion of the three-day Monetary Policy Committee (MPC) meeting that began on June 4. The financial markets are keenly awaiting the outcome, with widespread expectations of a 25 basis point (bps) cut in the repo rate, which currently stands at 6.00%.

Anticipated Policy Decisions :

If the RBI proceeds with the expected 25 bps reduction, the repo rate will decrease to 5.75%, marking the third consecutive rate cut this year, following similar reductions in February and April. This move would align with the RBI’s shift to an ‘accommodative’ policy stance, aiming to stimulate economic growth amid subdued inflation and global uncertainties .

Economic Context

India’s GDP growth is projected at 6.3% for FY25, reflecting a slowdown influenced by uneven consumption recovery and muted private investment. Concurrently, the Consumer Price Index (CPI) inflation eased to a multi-year low of 3.34% in March and is expected to remain below the RBI’s 4% target. These conditions provide the central bank with the flexibility to prioritize growth through monetary easing .

Market Reactions

Ahead of the policy announcement, the Indian stock markets opened in red. The BSE Sensex declined by 159.93 points to 81,282.11, and the Nifty 50 dropped by 27.65 points to 24,723.25. The Indian rupee also weakened, falling 12 paise to 85.91 against the US dollar .

Implications for Borrowers and Investors

A rate cut would likely lead to lower lending rates, benefiting borrowers with reduced EMIs on home and personal loans. For investors, especially in the bond market, falling interest rates typically result in rising bond prices, enhancing returns for existing bondholders and increasing demand for fixed-income assets .

Looking Ahead

Analysts anticipate that the RBI may continue its accommodative stance, with potential for further rate cuts in the coming months, depending on inflation trends and economic growth indicators. The central bank’s forward guidance in today’s announcement will be crucial in setting expectations for future monetary policy actions.