RBI MPC Meeting June 2025 Highlights: Repo Rate Cut by 50 bps, Policy Stance Turned Neutral

RBI MPC Meeting June 2025 Live Updates: RBI cuts repo rate by 50 basis points to 5.5%, shifts stance from accommodative to neutral amid easing inflation and global economic uncertainty. Read full policy highlights and implications for loans, EMIs, and the Indian economy.

RBI Repo Rate Cut June 2025: Key Policy Decision Announced

The Reserve Bank of India (RBI) has announced a 50 basis points (bps) cut in the repo rate, bringing it down from 6% to 5.5% during its June 2025 Monetary Policy Committee (MPC) meeting. This is significantly higher than the expected 25 bps cut and marks a major shift in India’s monetary policy.

Additionally, the RBI has changed its policy stance to ‘Neutral’ from ‘Accommodative’, reflecting a shift in focus from purely supporting growth to balancing inflation and financial stability.

What This Means for Borrowers and the Indian Economy

Loan EMIs may decrease as banks are likely to pass on the benefit of lower repo rates to borrowers.
The shift to a neutral stance indicates that further rate cuts are not guaranteed and will depend on incoming data.
Easing inflation pressures, particularly in food prices, have given the RBI room to cut rates.

RBI June 2025 Monetary Policy Highlights

Key Metric	Latest Update
Repo Rate	Cut by 50 bps to 5.5%
Policy Stance	Changed to Neutral
Inflation Forecast (FY25)	Revised down to 3.7%
GDP Growth Estimate (FY25)	Lowered to 6.5%
April CPI Inflation	3.16%, within 2–4% target
Last Rate Cut (April 2025)	25 bps cut to 6%

RBI Governor on Global Risks and Financial Stability

RBI Governor Sanjay Malhotra cited continued global economic uncertainty, AI-driven tech disruptions, and geopolitical tensions as key risks to India’s financial stability.

“The global growth and trade outlook have been revised downward. Managing the growth-inflation trade-off is becoming increasingly complex,” said Malhotra.

Context: Previous Repo Rate Cuts in 2025

February 2025: Repo rate cut from 6.5% to 6.25%
April 2025: Further reduced to 6%; stance shifted to ‘Accommodative’
June 2025: Repo rate now at 5.5%, with a return to ‘Neutral’ stance

What’s Next for RBI Policy in 2025?

With inflation under control but GDP growth moderating, analysts expect the RBI to adopt a data-driven approach for the rest of 2025. Future rate cuts will likely depend on global economic trends, monsoon performance, and consumer demand.