RBI MPC Meet Live: All eyes on Malhotra & co amid expectations of third consecutive rate cut this year

Time of India

3 days ago

06 Jun 2025 | 07:14:20 AM IST
RBI MPC Meet Live News Updates: The Reserve Bank of India (RBI) is set to announce its bi-monthly monetary policy today at 10 AM. RBI Monetary Policy Meeting: The Reserve Bank of India (RBI) will announce its bi-monthly monetary policy today, with expectations running high for another rate cut to boost economic growth, which has been facing pressure from global trade disruptions.Governor Sanjay Malhotra is set to present the monetary policy statement at 10 am, capping the three-day deliberations of the Monetary Policy Committee (MPC) that began on June 4. The central bank has already slashed the key repo rate by 25 basis points each in February and April this year.Analysts largely anticipate another 25 basis points cut, continuing the current easing cycle. However, a research note from the State Bank of India has projected a sharper cut of 50 basis points, citing the need for stronger policy support amid weakening global trade flows.In a statement on Thursday, the Reserve Bank noted that the impact of the 50-bps cumulative cut since February has already prompted several banks to lower their repo-linked external benchmark-based lending rates (EBLRs) and marginal cost of funds-based lending rates (MCLR). A reduction in the repo rate generally leads to lower lending rates, translating into reduced EMIs for both households and businesses.The six-member MPC includes three RBI officials—Governor Sanjay Malhotra, Deputy Governor M Rajeshwar Rao, and Executive Director Rajiv Ranjan—and three external members appointed by the government. The external panelists are Nagesh Kumar, Director-General of the Institute for Studies in Industrial Development; economist Saugata Bhattacharya; and Professor Ram Singh of the Delhi School of Economics. Show more The Monetary Policy Committee (MPC) is expected to maintain its focus on supporting the ongoing recovery in economic growth momentum, Careedge Ratings said in a report.The data intelligence firm added in the report that the rate-cut cycle that began in February is likely to continue, with a further 25-bps reduction in the repo rate expected at the June meeting, while retaining an "accommodative stance"."The healthy growth momentum and the already easing money market rates may prompt the RBI to take incremental steps in policy easing, reducing the likelihood of a larger rate cut in this meeting," CareEdge said in the report.The report further added, "We anticipate the policy statement to strike a dovish tone while remaining cautious about evolving global developments."The report cites the ease in retail inflation, saying that the Consumer Price Index (CPI) in April fell to 3.16 per cent, marking a six-year low. RBI MPC Meet Live: In the April meeting, the MPC unanimously decided to slash rates by 25 bps for the second consecutive time, from 6.25% to 6.00%, while changing the stance to 'accommodative' from 'neutral'. RBI MPC Meet Live: The MPC consists of three members from the RBI and three external members appointed by the government.RBI members are: Governor Sanjay Malhotra, Deputy Governor M Rajeshwar Rao, and Executive Director Rajiv Ranjan.The external members are: Nagesh Kumar, Director and Chief Executive, Institute for Studies in Industrial Development, New Delhi; Shri Saugata Bhattacharya, Economist, Mumbai; and Professor Ram Singh, Director, Delhi School of Economics, Delhi. Governor Sanjay Malhotra will deliver the policy statement at 10 am, following the conclusion of the Monetary Policy Committee's (MPC) three-day meeting that began on June 4. Good morning, ET readers! The Reserve Bank of India (RBI) will be announcing its bi-monthly monetary policy today, with markets widely anticipating another rate cut to support economic growth amid ongoing global trade disruptions.The RBI had earlier lowered the key repo rate by 25 basis points in both February and April.