• Feedback
  • RSS Feed
  • Sitemap
Ommcom News
  • Home
  • Odisha
  • Nation
  • World
  • Sports
  • Business
  • Entertainment
  • Videos
  • Science & Tech
  • Photo Gallery
  • ଓଡ଼ିଆରେ ପଢନ୍ତୁ
No Result
View All Result
  • Home
  • Odisha
  • Nation
  • World
  • Sports
  • Business
  • Entertainment
  • Videos
  • Science & Tech
  • Photo Gallery
  • ଓଡ଼ିଆରେ ପଢନ୍ତୁ
No Result
View All Result
Odisha News, Odisha Breaking News, Odisha Latest News || Ommcom News
Home Business

RBI MPC Begins, All Eyes On 3rd Rate Cut As Inflation Stays Benign

OMMCOM NEWS by OMMCOM NEWS
June 4, 2025
in Business

New Delhi: The Reserve Bank of India’s Monetary Policy Committee (MPC) meeting kicked off on Wednesday to decide on the repo rate cut and according to economists and industry experts, the Central Bank is likely to go for a third 25 bps cut in the repo rate to 5.75 per cent.

Chaired by RBI Governor Sanjay Malhotra, the committee’s decision will be announced on June 6. The Reserve Bank has already reduced the repo rate by 50 basis points in the previous two monetary policy reviews, lowering it to 6 per cent.

Market participants are now watching closely for signs of a potential third rate cut, as expectations build for further monetary support to boost domestic growth amid worsening global macroeconomic conditions.

The RBI’s dovish turn is primarily driven by two macroeconomic indicators: benign inflation and signs of cyclical slowdown.

Headline CPI inflation remains consistently below the RBI’s medium-term target of 4 per cent, while GDP growth appears to be softening due to external shocks such as trade disruptions from recent US policy moves.

Several rating agencies and global institutions have downgraded India’s GDP growth projections for FY26. Although the RBI maintained its 6.5 per cent growth estimate in April, others have revised expectations to a 6.0 per cent–6.3 per cent range.

“The MPC has clearly shifted from a neutral to an accommodative stance, indicating the RBI’s intent to inject liquidity and support growth. This pivot is reinforced by April’s CPI inflation easing to 3.2 per cent, the lowest since July 2019 and staying well within the RBI’s comfort zone,” said Bajaj Broking Research.

With inflation expectations anchored, growth momentum moderating, and external vulnerabilities persisting, the environment is becoming more favourable for another rate cut.

While the final decision will depend on evolving global conditions, especially from advanced economies — market consensus is strengthening around the likelihood of a third rate cut to help sustain India’s growth path, said the report.

A new SBI report has even projected a mega 50-basis point rate cut in June’s RBI MPC policy.

“Domestic liquidity and financial stability concerns have receded. Inflation is expected to stay within the tolerance band. Keeping the domestic growth momentum intact should be the main policy focus and provide the justification for a jumbo rate cut,” according to Dr Soumya Kanti Ghosh, Group Chief Economic Adviser, SBI.

With liquidity in an extended surplus mode, liabilities are getting repriced faster in the current rate-easing cycle. Banks have already reduced interest rates on savings accounts to the floor rate of 2.70 per cent.

Also, fixed deposit (FDs) rates have been reduced in the range of 30-70 bps since February 2025. Transmission to deposit rates is expected to be strong in the coming quarters, said the SBI report.

(IANS)

Tags: Monetary Policy Committee (MPC)RBI Governor Sanjay Malhotra
ShareTweetSendSharePinShareSend
Previous Post

Odisha CM Congratulates RCB On IPL 2025 Win

Next Post

Constable Held For Attempting To Rape Minor Girl In Sambalpur

Related Posts

Business

India, Kyrgyzstan Ratify Bilateral Investment Treaty

June 5, 2025
Business

India commits $20 billion for maritime infrastructure development: Sarbananda Sonowal

June 5, 2025
Business

Indian Maritime Firms Bag Shipbuilding Orders At Oslo Meet

June 5, 2025
Business

Lok Sabha Speaker Om Birla Highlights India’s Resilient Growth At BRICS Parliamentary Forum

June 5, 2025
Business

Sensex, Nifty End In Green Ahead Of RBI MPC Decision

June 5, 2025
Business

Centre Eases SEZ Norms In Big Push To Semiconductors, Electronic Parts

June 5, 2025
Next Post

Constable Held For Attempting To Rape Minor Girl In Sambalpur

Sensex and Nifty

Sensex, Nifty Open Higher Amid Positive Global Cues

Tremendous Respect For How Patidar Hasheld Himself With All That Scrutiny: Andy Flower

Khimji
  • Feedback
  • RSS Feed
  • Sitemap

© 2025 - Ommcom News. All Rights Reserved.

Welcome Back!

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In

Add New Playlist

No Result
View All Result
  • Home
  • Odisha
  • Nation
  • World
  • Sports
  • Business
  • Entertainment
  • Videos
  • Science & Tech
  • Photo Gallery
  • ଓଡ଼ିଆରେ ପଢନ୍ତୁ

© 2025 - Ommcom News. All Rights Reserved.