RBI MPC June 2025: Good news for borrowers as RBI cuts repo rate by 50 bps to 5.50%

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New Delhi: Governor Sanjay Malhotra announced that the rate has been slashed the key repo rate by 50 bps from 5.75 per cent to 5.50 per cent.

RBI Governor Sanjay Malhotra in his address said the monetary committee has agreed to cut rates by 50 basis points to 5.5% and have changed the stance to ‘neutral’ from accomodative.

The Reserve Bank of India (RBI) is expected to lower the repo rate by 25 basis points (bps) at its Monetary Policy Committee (MPC) meeting today (June 6), according to a Media poll.

The poll indicates that low inflation and slower-than-expected growth are key reasons behind the anticipated move. Inflation has stayed below the RBI’s 4% target, and first-quarter gross domestic product (GDP) growth is expected to miss earlier forecasts.

Nearly 90% of respondents believe the central bank will cut the repo rate from 6% to 5.75%. A smaller number of participants expect a deeper 50 bps cut to support credit growth and market activity.