RBI June MPC Review HIGHLIGHTS: Rate transmission should be faster than current 6-9 months, says Sanjay Malhotra after announcing surprise 50-bp repo, 100-bp CRR cuts

RBI MPC LIVE Update: Lowering inflation forecast logical given current trends, says Bank of Baroda Chief Economist  

Bank of Baroda Chief Economist Madan Sabnavis says: "Two points come to mind. First, the idea appears to be to frontload these cuts so that once demand for credit picks up, there would be more complete rate transmission. Second, given the inflation forecast for Q4 will be 4.4 per cent, a repo rate of 5.5 per cent would reflect a real rate of 1.1 per cent even though with the present inflation rate of around 3 per cent yields higher real rate of 2.5 per cent with repo at 5.5 per cent." 

"The bigger announcement has been the cut in CRR. This can obviate need to have any OMOs as Rs 2.5 lakh crore will be released into the system in four tranches. Therefore, liquidity should be very comfortable through the year, which is a big positive for the market," says Sabnavis.  

"Both these measures will provide a lot of support to the growth process and ensure that it continues on the higher and stable path for the rest of the year," he adds. 

RBI MPC Review LIVE: 3 repo rate cuts & CRR action a welcome move, says realty-focused AIF

The three straight repo rate cuts of 100 bps along with the 100 bps cut in the CRR are set to spur consumption demand and economic growth in view of the global uncertainties, growth acceleration and a decline in inflation, says Ankur Jalan, CEO of Golden Growth Fund (GGF), a category II real estate-focused Alternative Investment Fund (AIF). 

"However, with expectations of further cuts in repo rate in FY26, the consequent decline in fixed deposit rates, currently under 7.5 per cent, will disincentivise savers and HNI/UHNI investors, prompting them to look for potentially high return asset classes like alternative investment funds," adds Jalan. 

RBI MPC Policy Review: Repo, CRR moves a bold, timely, progressive move, says data analytics firm

The RBI’s repo and CRR cuts are a bold, timely and progressive given India’s growth momentum, says Samir Jasuja, Founder and CEO of data analytics firm PropEquity. 

"With retail inflation in the comfort zone, a deep cut in rate and liquidity measure will spur consumption and accelerate India’s growth. Both these measures will ensure faster transmission of rate cut so that the new homebuyers are cushioned from the impact of rising housing prices and affordable housing segment also gets a fillip as even a slight reduction in home loan rates impacts buying decisions," adds Jasuja. 

RBI June MPC Review Latest: Indian economy presents strength, stability, opportunity, says RBI Governor

Here's what the RBI Governor says: 

• Strength comes from the strong balance sheets of five major sectors:
  • Corporates
  • Banks
  • Households
  • Government
  • External sector
• There is stability on all three fronts:
  • Price
  • Financial
  • Political
• Indian economy offers immense opportunities to investors through 3Ds:
  • Demography
  • Digitalisation
  • Domestic demand

RBI June MPC Review Latest: Growing economic & financial fragmentation reshaping global economy, says RBI Governor

Complex interconnections within the financial system, elevated debt levels and growing influence of frontier technologies are raising financial stability concerns, he says.

Amidst heightened volatility in capital flows and exchange rates, coupled with constrained policy space, central banks of emerging market economies have a tougher task to stabilise their economies against global spillovers, adds the RBI Governor. 

RBI MPC Policy Latest: Growth-inflation trade-off becoming more challenging, says RBI Governor

The RBI chief says that monetary authorities are charting out a more cautious and carefully calibrated policy trajectory, with the growth-inflation trade-off becoming more challenging.

The uncertainty around the global economic outlook has somewhat ebbed since the April review "in the wake of temporary tariff reprieve and optimism around trade negotiations", he says, adding: "However, it is still high to weaken sentiments and lower global growth prospects. Accordingly, global growth and trade projections have been revised downwards by multilateral agencies."

RBI MPC Review: Real estate sector to get a boost, says property consultant 

The RBI’s 50 bps rate cut marks a strong and proactive stance aimed at lifting the low and mid value housing segments, and set to boost the country's real estate sector, says Shishir Baijal, Chairman and Managing Director at Knight Frank India. 

"Over the last few years, the strong housing market momentum was increasingly concentrating in the premium end even as there were signals of weakening the lower segments. With this cumulative 100 basis point cut in the policy interest rate we expect rekindling of the lower segments as affordability will witness a meaningful improvement for such homebuyers," says Baijal.

"We hope that the developer community too renews its focus in a big way to give longer legs to this housing market upcycle which is in its 5th year. Liquidity conditions remain balanced and conducive to supporting this monetary stance and we hope to see a greater transmission of this rate cycle," he adds. 

RBI MPC LIVE Update: RBI rate and stance reflect forward-looking approach to nurturing growth while maintaining price & financial stability, says PNB MD & CEO

The RBI’s calibrated reduction in the repo rate and a shift to a neutral stance reflects a forward-looking approach to nurturing growth while maintaining price and financial stability, says Ashok Chandra, MD and CEO at PNB. 

The decision to reduce the CRR by 100 bps in a phased manner is particularly significant, as it will enhance systemic liquidity and provide additional lending capacity to the banking sector, he says. 

"With inflation trending lower and macro indicators showing resilience, this policy move will support credit offtake, boost investor sentiment, and further strengthen India’s growth momentum. At PNB, we see this as an opportunity to step up credit deployment, especially towards productive sectors and retail demand, while continuing to support MSMEs, retail, agri, and other priority segments. The Indian banking sector stands on strong fundamentals, and we remain aligned with the RBI’s vision of fostering a stable, inclusive, and growth-led financial ecosystem," adds the CEO. 

RBI June MPC Review LIVE: CRR cut to reduce cost of funds for banks, says Sanjay Malhotra in post-policy media interaction

RBI Governor Sanjay Malhotra says that the 100-bp cut in the cash reserve ratio will reduce the cost of funds for commercial banks. 

The RBI has taken this liquidity-boosting measure to enable a better and faster rate transmission. 

RBI June MPC Review LIVE: Sanjay Malhotra says rate transmission should be faster than 6-9 months

RBI Governor Sanjay Malhotra points out that currently, it takes 6-9 months for the benchmark rate revisions to be transmitted to borrowers. 

Rate transmission should be faster, he says.  

RBI June MPC Review LIVE: RBI confident that rate cut benefit will translate to better credit position, says Governor Sanjay Malhotra 

The RBI Governor says that the central bank is confident that the benefit of the rate cut will lead to better credit position. 

He also says that the RBI will continue to monitor incoming data amidst uncertainties and will plan further action accordingly.

RBI MPC Policy Review LIVE: Developers will be able to access more capital for projects, says property consultant

The RBI's rate action effectively lowers the cost of borrowing, making home loan EMIs easier on the pocket and thereby directly improving affordability for buyers, says Anuj Puri, Chairman of property consultant ANAROCK Group.

"This can potentially boost demand in the Indian real estate sector, especially in affordable and mid-income segments. Affordable housing faced the sharpest pandemic fallout, with sales and new launches shrinking in the top seven cities," says Puri. 

The CRR cut will help boost liquidity in the banking system, which means that banks have more funds to lend, he says. "Developers will be able to access more capital for their projects, and this can positively impact project completion timelines. It also gives banks the option to reduce home loan interest rates, which will have again positively impact sentiment in the affordable and mid-income segments," he says. 

While the rate cut is a strong positive for real estate, especially for affordable housing, much now depends on how well it can adapt to higher input costs and ongoing global uncertainties, he adds. 

RBI June MPC Review LIVE: CRR liquidity boost to speed up rate transmission, says economist  

Anitha Rangan, Economist, Equirus Securities, points out that the RBI has reversed its previous dovishness. "However, an alternate bout of dovishness comes from the 100 bp cut in CRR in four tranches of 25 bp each over the course of the year which will release Rs 2.5 lakh crore of liquidity. This is meant to speed up the rate cut transmission, which is slow as of now," she says.

'It is no longer about growth-inflation, but about external vs internal'

"A brake on further rate cuts suggests that RBI is finally concerned about FX but to keep the domestic growth engine running, continuing to give a liquidity boost... However, it appears that it is no longer about growth-inflation, but about external versus internal. Front-loading is necessary for growth but externalities are keeping further cuts away," the economist adds. 

RBI June MPC Live Update: FY26 GDP growth forecast unchanged at 6.5%

The RBI keeps its FY26 growth projections unchanged. 

It expects GDP growth to average 6.5 per cent in FY26. 

Its quarterly forecasts are as follows:  

• Q1 FY26: 6.5% 
• Q2 FY26: 6.7% 
• Q3 FY26: 6.6% 
• Q4 FY26: 6.3% 

RBI June MPC Live Update: CRR ratio now stands at 3.0%

Cash reserve ratio is a key tool at the RBI's disposal.

It allows the central bank to adjust liquidity in the banking system. 

The ratio determines the amount of cash that commercial lenders have to keep parked with the RBI. 

A lower CRR is set to translate to the availability to stronger cash for banks. 

RBI June MPC Review LIVE: No tussle between price stability and growth in medium and long term, says RBI Governor

Sanjay Malhotra says that the RBI remains committed to maintaining price stability while being focused on growth. 

There is no tussle between price stability and growth in the medium and the long term, says the RBI Governor. 

RBI June MPC Review LIVE: RBI Governor mentions strong domestic macro fundamentals, benign inflation outlook 

Sanjay Malhotra says that with the global growth environment remaining uncertain, it is important to focus on domestic growth. 

There is no tussle between price stability and growth in the medium and the long term, says the RBI Governor. 

MPC June Policy Review LIVE: BREAKING | RBI cuts CRR by 100 bps 

The MPC decides to cut the cash reserve ratio (CRR) by 100 basis points, in order to boost liquidity in the banking system

The CRR cut will release liquidity worth Rs 2.5 lakh crore into the system, says the RBI Governor. 

MPC June Policy Review LIVE: RBI remains committed to providing sufficient liquidity to banking system, says Governor Sanjay Malhotra 

RBI June Policy LIVE: RBI projects Q1 FY26 retail inflation at 2.9% 

The RBI Governor announces revisions in the quarterly forecasts for the current financial year as follows: 

• Q1 FY26: 2.9%
• Q2 FY26: 3.4%
• Q3 FY26: 3.9%
• Q4 FY26: 4.4%

RBI June Policy LIVE: FY26 consumer inflation projection revised downward to 3.7% 

The MPC has lowered its consumer inflation projection by 30 basis points to 3.7 per cent for the current financial year. 

In the April policy, the full-year inflation forecast stood at 4.0 per cent. 

The RBI Governor cites evenly balanced risks while announcing the latest estimates. 

RBI June Policy LIVE: RBI will continue to monitor weather situation & still evolving tariff related concerns, says Sanjay Malhotra

RBI June Policy LIVE: RBI will continue to monitor weather situation & still evolving tariff related concerns, says Sanjay Malhotra

RBI June Policy LIVE: Policy stance changed back to 'neutral'

A neutral stance of policy enables the RBI to adjust the benchmark lending rate in any direction, when needed, while balancing growth with inflation.

RBI Policy LIVE: BIG BREAKING—Repo rate cut by 50 bps 

RBI MPC Review LIVE: Indian economy displaying strength and stability amidst global uncertainties, says RBI Governor

The Indian economy offers immense opportunities to domestic as well as global investors, says Sanjay Malhotra. 

RBI MPC Review LIVE: Global growth & trade projections have been revised downwards by multilateral agencies, says RBI Governor

The Reserve Bank of India Governor says that monetary authorities are charting out a more cautious and carefully calibrated policy trajectory, with the growth-inflation trade-off becoming more challenging.

RBI MPC Review LIVE: RBI Governor Sanjay Malhotra addressing media

RBI MPC June Policy Review LIVE: What are rate-sensitive stocks? 

Rate-sensitive stocks are stocks from businesses belonging to the sectors and industries that are linked to changes in interest rates. 

Bank, NBFC, auto, real estate and consumer discretionary stocks are sensitive to benchmark interest rates. 

RBI June MPC LIVE Update: Rate-sensitive stocks a mixed bag; take a look at financial services shares

How banking and NBFC shares fare

RBI June MPC LIVE Update: Rate-sensitive stocks a mixed bag; Voltas, Havells, Blue Star rise

How consumer durable stocks fare 

RBI June MPC LIVE Update: Rate-sensitive stocks a mixed bag; DLF, Godrej Properties, Prestige shares rise

How realty stocks fare minutes into opening bell

RBI June MPC LIVE Update: Rate-sensitive stocks a mixed bag ahead of RBI decision; Tata Motors, Eicher decline, Hero MotoCorp edges up

Here's how some of the rate-sensitive stocks are faring at this hour: 

How auto stocks fare minutes into opening bell

RBI MPC Policy Review LIVE: Nif 50 & Sensex begin day on a sluggish note, 50-scrip benchmark slips below 24,750

The Sensex starts the day 7.8 pts lower at 81,434.2 while the Nifty50 begins the day at 24,748.7, down 2.2 points from its previous close. 

Read more on opening bell

RBI MPC June Policy Review: All eyes on RBI commentary on trade tariffs—US deadline ends next month

The June MPC review comes at a time when markets are staring at the end of a 90-day pause on America's reciprocal tariffs on most of its trade partners due next month. 

On April 2, US President Donald Trump imposed reciprocal tariffs on several countries, imposing an additional duty of 26 per cent on India.

However, later, the Trump administration suspended that duty till July 9, while leaving a 10 per cent baseline duty on all the countries unchanged.

Economists will closely watch the RBI's commentary on trade tariffs, and its possible implications for India.

They will also look out for the MPC's GDP and inflation projections.  

RBI MPC Policy Review LIVE: GIFT Nifty futures indicate a flat start on Dalal Street

GIFT Nifty futures, an early indicator of the headline index, are down 6.5 points at 24,848 now. 

On Thursday, the Nifty50 gained 130.7 points, or 0.5 per cent, to settle at 24,750.9, amid gains in financial, IT and healthcare shares.

Read more on GIFT Nifty futures

RBI June MPC Policy Review LIVE: How to trade Nifty 50 & Nifty Bank today? Key levels to track & more... Market guru Anil Singhvi shares his outlook  

Zee Business Managing Editor Anil Singhvi expects support for the Nifty50 at 24,525-24,625 levels and a stronger support zone at 24,400-24,500 levels today. 

For the Nifty Bank, the market wizard expects support at 55,350-55,500 levels and a strong buy zone at 55,050-55,250 levels. 

Catch more on how he views Dalal Street today

RBI MPC Review LIVE: 4 reasons that can make MPC go for even 50-bps cut today

Market guru Anil Singhvi has highlighted four reasons that can enable the MPC to go for even a 50-basis-point repo rate cut in the June review. 

These are: 

• Inflation being under control
• Expectations of a good monsoon
• Sluggish credit growth
• Opportunity to capitalise on global uncertainty

RBI MPC Review LIVE: Take a look at current GDP and inflation forecasts 

In April, the MPC lowered its annual inflation and GDP projections for FY26, to 4.0 per cent and 6.5 per cent, respectively. 

Since then, there has been a pickup in GDP growth and a downward movement in inflation.

While GDP growth stands at a one-year high of 7.4 per cent in Q4, consumer inflation has eased to a 6-year low in April.

RBI June Policy Review LIVE: Will MPC revise GDP and inflation projections today?

Four in every five economists polled by Zee Business expect the RBI to revise its GDP as well as inflation estimates in the June review.

RBI June MPC Review LIVE: A rate cut today will be year's third 

Any reduction in the repo rate announced today will be the third this year, and also the third in the current cycle of monetary policy easing. The decision will be announced by the RBI Givernor at 10 am.

The RBI's top brass will hold a customary media interaction at noon.

RBI June MPC Policy LIVE: How much rate reduction can you expect in FY26?

Four in every five economists polled by Zee Business expect total rate cuts of 75-100 basis points in FY26.

This translates to reductions amounting to up to 75 bps on top of the 25-basis-point cut in April.

The remaining one economist expects a 50-bp cut in all of FY26, according to the poll.

RBI June MPC Review: Can you expect a rate cut?

The MPC has already lowered the repo rate—or the key interest rate at which the RBI lends money to commercial banks, and the very rate that impacts borrowers’ loan EMIs—by a cumulative 50 basis points (bps) since February.

What to expect in June 6 RBI policy 

Four in every five participants in a Zee Business poll of economists expect the MPC to decide to cut the repo rate by 25 basis points in the June review.

Meanwhile, one in every four participants even expects a 50-basis-point cut.

RBI June MPC Review LIVE: What makes FY26's 2nd review important?

The June Monetary Policy Committee review comes at a time when the economy has achieved a one-year high in growth with a six-year low in consumer inflation, while markets stare at the end of a 90-day pause on America's reciprocal tariffs on most of its trade partners due next month. 

RBI June MPC Review LIVE: Policy stance at 'accommodative'—Here's what it means

Currently, the MPC's policy stance stands at "accommodative", a switch the RBI Governor-headed panel made from "neutral" in April. 

What does an accommodative policy stance indicate?

An accommodative stance suggests the RBI's intent to lower the key lending rate, whenever possible, while striking a balance between economic growth and retail inflation.

RBI June MPC Review LIVE: RBI Governor Sanjay Malhotra set to announce rate decision at 10 am

A rate cut—as widely expected by economists—will be the third straight scheduled policy reduction in the current cycle of monetary policy. In February and April, the RBI's Monetary Policy Committee—headed by Governor Malhotra—announced a rate cut of 25 basis points each, taking it to 6.00 from a pandemic-era high of 6.5 per cent.

RBI MPC Review: Repo rate stands at 6.0%—Check out post-COVID repo rate history

Here's a summary of the repo rate in the post-pandemic era: