Another 25-bp repo rate cut on the cards

RBI expected to lower inflation projection for FY26

- ANJALI KUMARI

The Reserve Bank of India's (RBI's) six-member monetary policy committee (MPC) is expected to cut the repo rate by 25 basis points (bps) to 5.75 per cent, nine of the 10 respondents said in a Business Standard poll. State Bank of India, however, expects a 50-bp policy repo rate cut.

The committee, which will meet for three days from June 4, is scheduled to announce its policy review on Friday.

All 10 respondents agreed that the RBI would lower its FY26 headline inflation projection from 4 per cent forecast in the April policy review.

The rate-setting panel had reduced the repo rate by 25 bps in April, following a similar cut in February, after keeping it unchanged in 11 consecutive meetings. In the last review, the MPC had shifted the policy stance to accommodative, indicating the RBI's renewed focus on supporting economic growth.