RBI cuts repo rate by 50 basis points, CRR by 100 basis points
The Reserve Bank of India (RBI) Monetary Policy Meeting held on 6 June 2025 led to a cut in bank repo rates by 50-basis point (bps), bringing the rate to 5.50% from 6%. RBI also cut cash reserve ratio (CRR) by 100-bps from 4% to 3% on deposits in four tranches of 25 bps each. RBI decisions resulted from retail inflation cooling to 3.16 per cent in April. Union Bank of India’s report estimates the retail inflation to drop to a 6-year low of 3 per cent. CRR cut will release primary liquidity of Rupees 2.5 Lakh crores or US Dollars 29.4 billion. Reserve Bank of India Governor Sanjay Malhotra said consumer price index (CPI) inflation is revised down to 3.7% from earlier 4%. Near term & medium term outlook gives confidence on durable alignment with 4% target. Growth estimate for FY 2025 is at 6.5 % and in FY 2026 growth will remain strong. Gross foreign direct investment (FDI) increased 14 % in FY 2025. Forex reserves stood at US Dollars 691.5 billion. Both by inflation & growth markers, Indian economy is progressing well, said RBI Governor.
The Reserve Bank of India (RBI) Monetary Policy Meeting held on 6 June 2025 led to a cut in bank repo rates by 50-basis point (bps), bringing the rate to 5.50% from 6%. RBI also cut cash reserve ratio (CRR) by 100-bps from 4% to 3% on deposits in four tranches of 25 bps each. RBI decisions resulted from retail inflation cooling to 3.16 per cent in April. Union Bank of India’s report estimates the retail inflation to drop to a 6-year low of 3 per cent. CRR cut will release primary liquidity of Rupees 2.5 Lakh crores or US Dollars 29.4 billion. Reserve Bank of India Governor Sanjay Malhotra said consumer price index (CPI) inflation is revised down to 3.7% from earlier 4%. Near term & medium term outlook gives confidence on durable alignment with 4% target. Growth estimate for FY 2025 is at 6.5 % and in FY 2026 growth will remain strong. Gross foreign direct investment (FDI) increased 14 % in FY 2025. Forex reserves stood at US Dollars 691.5 billion. Both by inflation & growth markers, Indian economy is progressing well, said RBI Governor.
