Overview

• The Reserve Bank of India lowered its benchmark repo rate by 50 basis points to 5.5% on June 6, completing a cumulative 100 bps cut since February.
• The central bank changed its monetary policy stance from accommodative to neutral to retain flexibility for future rate adjustments.
• Minutes of the June 4–6 Monetary Policy Committee meeting show a 5–1 vote in favor of the full 50 bps cut, with one member preferring a 25 bps reduction.
• Since January, the RBI has injected Rs 9.5 lakh crore of durable liquidity into the banking system and cut the cash reserve ratio by 100 bps to boost lending capacity.
• The inflation outlook for 2025–26 is projected at 3.7% and GDP growth is forecast at 6.5%, underscoring benign price pressures and a focus on sustaining expansion.