SOURCE : NEW18 NEWS
RBI MPC Meeting June 2025 Live Updates: In a widely anticipated move, the Reserve Bank of India’s Monetary Policy Committee (MPC) cut the repo rate by 50 basis points to 5.5% on Friday, marking the third straight rate reduction this year. The MPC also shifted its policy stance from ‘accommodative’ to ‘neutral’, underscoring a recalibrated approach amid evolving macroeconomic conditions.
Announcing the decision, RBI Governor Sanjay Malhotra said the move follows a comprehensive assessment of the current economic landscape. The committee concluded its three-day meeting today, which began on June 4, 2025.
This rate cut follows 25-basis-point reductions in both February and April. While most market experts had expected another 25-basis-point cut this time around, a research note from the State Bank of India had flagged the possibility of a more aggressive 50-basis-point cut.
Since February 2025, the RBI has cumulatively cut the repo rate by 50 basis points. This easing has prompted most banks to lower their repo-linked external benchmark-based lending rates (EBLRs) and marginal cost of funds-based lending rates (MCLR), ultimately making loans cheaper for both retail and corporate borrowers. In effect, lower repo rates typically translate to lower EMIs, offering a breather for households and businesses alike.
