SOURCE : NEW18 NEWS
Last Updated:June 06, 2025, 10:27 IST
The RBI’s Monetary Policy Committee has decided to cut the key repo rate by 50 basis points (bps) to 5.5 per cent, RBI Governor Sanjay Malhotra announced on Friday.
The RBI also reduced the SDF to 5.25 per cent, and MSF and Bank Rates to 5.75 per cent.
RBI Monetary Policy Committee Meeting June 2025: The RBI’s Monetary Policy Committee (MPC) has decided to cut the key repo rate by 50 basis points (bps) to 5.5 per cent, RBI Governor Sanjay Malhotra announced on Friday. With this, the repo rate is the lowest level in nearly 3 years.
He also said the MPC has changed its policy stance from ‘accommodative’ to ‘neutral’. “From here onwards, the MPC will be carefully assessing the incoming data and the evolving outlook to chart out the future course of monetary policy,” Malhotra said.
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Announcing the second bi-monthly monetary policy of FY26, the RBI governor said, “Last mile of inflation turning out little more protractive. Central banks have tougher task to stabilise economy amid global volatilities.”
The RBI also reduced the SDF to 5.25 per cent, and MSF and Bank Rates to 5.75 per cent. The SDF is the lower band of the interest rate corridor, while the MSF is the upper band.
FY26 CPI Inflation Projection Cut To 3.7%
The RBI on Friday also revised downwards the CPI inflation forecast to 3.7 per cent for FY26, from the 4 per cent projected earlier.
FY26 GDP Growth Forecast Maintained At 6.5%
The RBI maintained its FY26 GDP forecast at 6.5 per cent.
Most analysts had expected a 25-basis-point cut in repo rate. However, State Bank of India (SBI) had said the RBI MPC may go for a ‘jumbo rate cut’ of 50 bps to reinvigorate the credit cycle and counterbalance uncertainties.
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Haris is Deputy News Editor (Business) at news18.com. He writes on various issues related to markets, economy and companies. Having a decade of experience in financial journalism, Haris has been previously asso…Read More
Haris is Deputy News Editor (Business) at news18.com. He writes on various issues related to markets, economy and companies. Having a decade of experience in financial journalism, Haris has been previously asso… Read More
- First Published:
June 06, 2025, 10:09 IST
