Will RBI reduce the repo rate for the third consecutive time? MPC decisions will be announced shortly after

By Cross Talk India Team Last updated Jun 6, 2025

Photo: PTI What will be affected on the country’s economy due to decrease in repo rate

reserve Bank of India The Monetary Policy Committee (MPC) meeting started on June 4, which is the last day today. On the last day of the meeting on Friday, June 6, the Governor of the Reserve Bank of India Sanjay Malhotra will announce decisions. RBI can announce the repo rate cut once again today. Experts believe that the Reserve Bank of India may cut interest rates by 0.25 percent for the third consecutive time, due to the inflation remains below the average target of 4 percent.

How many times the repo rate has decreased this year

RBI has cut the repo rate twice this year. The RBI had reduced by 0.25 percent in February and 0.25 percent in April, reducing the repo rate from 6.50 percent to 6.00 percent. If Sanjay Malhotra reaches the repo rate by 0.25 percent today, then it will be 5.75 percent. Let us tell you that the repo rate directly affects interest rates and banks reduce interest rates. Due to low repo rate, all loans including home loan, car loan, personal loan become cheap, which increases shopping.

What will be affected on the country’s economy due to decrease in repo rate

Due to reduced repo rate, interest rates decrease and decrease in interest rates increases demand. If interest rates decrease, there is a jump in sales of homes and vehicles, which has a positive impact on the country’s economy. Madan Sabnavis, Chief Economist of Bank of Baroda, recently said, “We believe that inflation is under control and due to the RBI’s various measures being very comfortable, the MPC will cut the repo rate by 0.25 percent on June 6.

What are the expectations from the upcoming meeting of RBI

Experts say that the RBI can reduce interest rates not only today but also in the next two other meetings, which will reduce the repo rate to 5.25 percent. Aditi Nair, the chief economist of the rating agency ICRA, said that this week the repo rate is expected to be reduced by 0.25 per cent, after which two policy reviews will be deducted two more, which will make the repo rate to 5.25 per cent by the end of the cycle. ”

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