RBI Repo Rate Cut:

Analysts expect the Reserve Bank of India (RBI) to announce a third consecutive repo rate cut during its June 2025 policy meeting. The Monetary Policy Committee (MPC), led by Governor Sanjay Malhotra, started its three-day meeting on June 4. Many financial experts believe the RBI will reduce the repo rate by 25 basis points (bps), from 6% to 5.75%, to help boost economic growth.

RBI Repo Rate Cut :

This year, the central bank has already made two rate cuts—once in February and again in April—both by 25 bps. If the June cut happens, it would show the RBI’s continued efforts to support the economy amid slow global trade, falling demand, and low inflation.

Experts say that inflation is currently under control and below the RBI’s target of 4%. This gives the bank space to lower interest rates without risking price instability. Analysts from companies like Bondbazaar and Angel One agree that another 25-bps rate cut is likely, especially if GDP growth remains moderate.

Market experts also highlight that rate cuts are good news for bond investors. Lower interest rates usually mean higher bond prices, which can lead to better returns. There is also talk of more rate cuts later this year if inflation stays low and economic growth remains sluggish.

Brokerage firms like Bajaj Broking and CareEdge Ratings say that the economic environment now supports further rate cuts. They predict a total cut of 50 bps in 2025.With 25 bps expected in June and possibly more later if conditions demand it.

In conclusion, the RBI is likely to reduce the repo rate again in June 2025.It is marking its third cut this year. The government aims to help the Indian economy recover by making borrowing cheaper and supporting both consumption and investment.

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