New Delhi, June 2 (H.S): The Reserve Bank of India (RBI) is expected to cut the policy interest rate by 0.25 percent for the third consecutive time, as the inflation rate remains below the target of four percent amid global uncertainties from American tariffs. A bi-monthly monetary review meeting by the RBI's Monetary Policy Committee (MPC) will occur from June 4 to 6, with decisions announced by Governor Sanjay Malhotra. Experts predict a rate reduction due to a balanced current inflation rate and the RBI's easing of liquidity.

Notably, the RBI previously cut the repo rate from 6.50 percent to 6 percent in recent meetings in February and April 2023. India’s GDP growth has decreased to 6.5 percent in the financial year 2024-25 from 9.2 percent in the previous year, but growth in the January-March quarter reached 7.4 percent, surpassing expectations. The MPC meeting may also revise estimates for growth and inflation rates as the RBI continues to navigate through economic challenges.

Hindusthan Samachar / Jun Sarkar