Repo Rate

RBI Likely to Cut Repo Rate by 25 bps in June MPC Meet, Say Experts

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New Delhi, June 3 — As the Reserve Bank of India (RBI) gears up for its Monetary Policy Committee (MPC) meeting this week, market analysts and industry experts are widely anticipating a 25 basis point cut in the repo rate, citing a supportive macroeconomic environment and easing inflationary pressures.

Repo Rate

The six-member MPC, which includes three RBI officials and three government-appointed members, convenes bi-monthly to set key policy rates to manage inflation and support economic growth. If a cut is announced, it will mark the third consecutive rate reduction in 2025, amounting to a cumulative 75 basis points.

A Strategic Move to Boost Growth

The central bank’s move is expected to further lower borrowing costs across sectors and enhance liquidity in the economy. Industry leaders believe this decision will provide a crucial stimulus to consumption and investment, particularly in the real estate and housing markets.

Mr. Pradeep Aggarwal, Founder and Chairman of Signature Global (India) Ltd., remarked:

“A 25 bps rate cut will offer major relief to homebuyers. It will not only improve affordability but also accelerate demand across housing segments. With banks already reducing lending rates after the last two MPC meetings, this next cut could act as a strong catalyst for further growth in the sector.”

Positive Ripple Effects for Real Estate and Beyond

Mr. Ashok Kapur, Chairman of Krishna Group and Krisumi Corporation, echoed similar views, stating that lower home loan interest rates will revive housing demand and drive momentum across related industries such as cement, steel, and construction.

“The multiplier effect of a rate cut on allied sectors will be substantial. It opens up a promising outlook for real estate while encouraging broader economic recovery,” he noted.

A Favorable Outlook for Borrowers

Mr. Raoul Kapoor, Co-CEO of Andromeda Sales and Distribution Pvt. Ltd., emphasized that controlled inflation, a stable financial system, and accommodative policy signaling by the RBI make a strong case for the anticipated cut.

“If the repo rate is reduced again, it will bring the total cut this year to 75 basis points—a significant easing that translates into real savings for borrowers. Home loan applicants, in particular, can benefit from increased loan eligibility and reduced EMI burden, which will likely spur consumer spending,” he added.

What It Means for the Economy

A reduction in the repo rate—currently the benchmark interest rate at which the RBI lends to commercial banks—lowers the cost of borrowing for banks, who in turn can pass on the benefit to consumers and businesses. This makes loans more affordable and improves cash flow, particularly for sectors like housing, infrastructure, MSMEs, and auto.

The expected cut is in line with the RBI’s ongoing accommodative stance aimed at supporting growth while keeping inflation within the 2–6% target range set by the government.

All eyes are now on the MPC’s policy announcement later this week, which could set the tone for the remainder of the financial year.

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Ganpat Singh Chouhan
Ganpat Singh Chouhan
My name is Ganpat Singh Choughan. I am an experienced content writer with 7 years of expertise in the field. Currently, I contribute to Daily Kiran, creating engaging and informative content across a variety of categories including technology, health, travel, education, and automobiles. My goal is to deliver accurate, insightful, and captivating information through my words to help readers stay informed and empowered.