RBI MPC June 2025: Watch Governor Sanjay Malhotra's full speech on 50 bps repo rate cut, GDP forecast and more

The RBI has announced a repo rate cut of 50 basis points (bps), bringing it down to 5.5%, the lowest in three years. This marks the third consecutive reduction in the key interest rate this year.

The repo rate is the rate at which banks borrow from the RBI.

Reserve Bank of India (RBI) Governor Sanjay Malhotra announced the MPC's decision on Friday, June 6, saying that the cut is on the back of a comprehensive assessment of current macroeconomic conditions.

The MPC also decided to change the monetary policy stance to neutral, from accommodative earlier.

While most analysts expected the RBI to announce a repo rate cut of 25 bps, some believed that the central bank may go for a jumbo rate cut of 50 bps.

The RBI governor, while announcing the policy, said that the Indian economy presents strength, stability and opportunity amid global concerns. Governor Sanjay Malhotra added that the Indian economy is growing at a very fast pace, and "we are making all efforts to grow even faster in our vision of Viksit Bharat."

The governor announced that the RBI had revised its inflation outlook for FY26 to 3.7% from 4% earlier, saying that core inflation largely remains stable and contained. Further, the RBI retained its GDP growth forecast for the current fiscal year (FY 25-26) at 6.5%.

The MPC, in a major boost to liquidity, reduced the cash reserve ratio (CRR) to 3% from 4% earlier.