RBI panel to keep repo rate unchanged in June, say bankers

Outlook likely to be less hawkish; monsoon & GST roll-out to decide course of action

The Reserve Bank of India’s monetary policy committee (MPC) is expected to keep the repo rate — at which it lends to banks — unchanged when it meets early June to take stock of macroeconomic factors and behaviour of prices since April.

Many risks that were flagged then, including oil prices and inflation, have not turned adverse. But, the MPC might prefer to stick to its earlier policy stance. The focus would then be on the outlook of the committee, bankers said.

A senior State Bank of India executive said no rate cut action was expected in the June review, while the