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RBI monetary policy: 25-bp repo rate cut on the cards, shows BS poll

RBI expected to lower inflation projection for FY26

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The decline was primarily led by an 11 per cent year-on-year fall in vegetable prices and a 5.23 per cent drop in pulses, the steepest in over six years. (ILLUSTRATION: AJAYA MOHANTY)

Anjali Kumari Mumbai

3 min read Last Updated : Jun 02 2025 | 12:05 AM IST

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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

Topics : RBI monetary policy committee Policy rates repo rate