Three RBI rate cuts likely from June as inflation dips below 4% target

With inflation staying under RBI's 4% target for two months, economists expect three back-to-back repo rate cuts, starting with a 25 bps reduction in June

With the consumer inflation rate staying below the Reserve Bank of India’s (RBI’s) 4 per cent target for two consecutive months, economists foresee three back-to-back reductions in the policy repo rate, starting with a 25 basis point cut in June.

 

The RBI’s Monetary Policy Committee (MPC) has cut the policy repo rate by a cumulative 50 basis points since February, equally divided over two credit policies.

 

The next review of the MPC is during June 4-6.

 

“The growth-inflation outlook remains favourable for a further easing of policy rates with downside risks to growth and inflation,” said Gaura Sen Gupta, chief