RBI MPC Meeting Live Updates: The Reserve Bank of India (RBI) is once again in the spotlight as the Monetary Policy Committee (MPC), led by Governor Sanjay Malhotra, concludes its second meeting of FY26 on June 6, 2025. With the RBI MPC Meeting Live Updates dominating financial discussions, loan borrowers, investors, and businesses are eagerly awaiting whether Malhotra will announce a third consecutive repo rate cut, potentially bringing relief to millions by lowering EMIs on home, auto, and personal loans. Inflation is below the RBI’s 4% target, and economic growth needs a boost—will this meeting deliver cheer for borrowers? This article provides real-time insights, expert analysis, and actionable information on what to expect from the MPC’s decision, its impact on loan borrowers, and how it shapes India’s economic outlook.

What Is the RBI MPC Meeting and Why Does It Matter?

The RBI Monetary Policy Committee (MPC) is a six-member panel responsible for setting India’s key interest rates, including the repo rate—the rate at which the RBI lends to commercial banks. This rate directly influences borrowing costs, EMIs, and economic growth. The MPC, chaired by Governor Sanjay Malhotra, meets bi-monthly to assess inflation, growth, and global economic conditions. The June 2025 meeting, held from June 4 to 6, is critical as it follows two 25 basis point (bps) repo rate cuts in February and April 2025, reducing the rate from 6.5% to 6%.

Why Loan Borrowers Are Watching Closely

A lower repo rate reduces the cost of borrowing for banks, which often translates to lower interest rates on loans. For borrowers, this means:

• Reduced EMIs: Home, auto, and personal loan EMIs could decrease, freeing up disposable income.
• Increased Affordability: Lower rates make big-ticket purchases like homes and cars more accessible.
• Economic Boost: Cheaper loans stimulate consumer spending and business investments, driving growth.

With inflation at 3.16% in April 2025 and GDP growth projected at 6.5% for FY26, the stage is set for potential rate cuts. But will Sanjay Malhotra deliver? Let’s dive into the details.

RBI MPC Meeting June 2025: Key Expectations

Current Economic Context

The Indian economy faces a delicate balance. Inflation has moderated significantly, with the Consumer Price Index (CPI) dropping to 3.16% in April 2025, well below the RBI’s 4% target. Meanwhile, GDP growth has slowed, with Q3 FY25 recording 6.2% growth, down from 9.2% the previous year. Global trade uncertainties, particularly U.S. tariffs under President Donald Trump, have clouded India’s economic outlook, prompting the RBI to revise FY26 GDP growth to 6.5% from 6.7%.

Expert Predictions for June 6, 2025

Economists and market analysts are largely aligned on expectations for a repo rate cut:

• Reuters Poll: 53 of 61 economists predict a 25 bps cut to 5.75%, with 6 expecting no change and 2 anticipating a 50 bps cut.
• CNBC-TV18 Poll: A majority expect a 25 bps cut, citing low inflation and weaker growth as key drivers.
• SBI Research: Suggests a potential “jumbo” 50 bps cut in June, followed by another 25 bps in August, totaling 125 bps in FY26.

The MPC’s shift to an “accommodative” stance in April 2025 signals a focus on growth, increasing the likelihood of a rate cut. However, global uncertainties and rupee stability concerns could temper the RBI’s approach.

Sanjay Malhotra’s Approach

As the 26th RBI Governor, Sanjay Malhotra has emphasized balancing growth and inflation. Since taking office in December 2024, he has overseen two rate cuts and liquidity injections worth ₹2.66 trillion. His data-driven approach and focus on financial stability make him a key figure in navigating India’s economic challenges.

Potential Impact of a Repo Rate Cut

Benefits for Loan Borrowers

A 25 bps cut to 5.75% could significantly impact borrowers. Here’s how:

Example: For a ₹1 crore home loan with a 20-year tenure, a 25 bps rate cut could save borrowers approximately ₹1.2 lakh annually, boosting disposable income and consumer spending.

Sector-Specific Impacts

• Real Estate: Lower interest rates enhance home loan affordability, spurring demand in mid-income and affordable housing segments. “The rate cut will boost housing demand and provide impetus to the real estate sector,” says Boman Irani, President, CREDAI.
• MSMEs: Cheaper credit strengthens small businesses, particularly in rural and semi-urban areas, supporting job creation.
• Banking: Lower rates may compress bank margins but increase loan demand, benefiting banking stocks like SBI and HDFC Bank.

Risks and Challenges

• Rupee Depreciation: Lower rates could weaken the rupee, increasing import costs.
• Global Uncertainties: U.S. tariffs and volatile commodity prices could disrupt growth.
• Inflation Rebound: A premature cut could risk inflation if food prices or global factors spike.

Live Updates: What to Expect on June 6, 2025

Schedule and How to Follow

• 10:00 AM IST: Governor Sanjay Malhotra announces the MPC’s decision via a live stream on the RBI’s official YouTube channel and X account.
• 12:00 PM IST: A press conference with Malhotra and deputy governors will provide insights into the decision, inflation projections, and GDP forecasts.

Follow live updates on platforms like:

• Financial Express for detailed coverage.
• Business Standard for market reactions.
• Goodreturns for real-time blogs.
• Fundmetry for finance news.

Case Study: Impact of Previous Rate Cuts

In February 2025, the RBI cut the repo rate by 25 bps to 6.25%, followed by another cut to 6% in April. These moves:

• Reduced home loan rates by 0.2%–0.3% for major banks like SBI and ICICI.
• Boosted auto sales by 8% in Q1 FY26, as reported by SIAM.
• Increased MSME credit growth by 12%, per RBI data.

For example, Priya Sharma, a 35-year-old IT professional from Mumbai, refinanced her ₹75 lakh home loan after the April cut, saving ₹900/month on her EMI. Such real-world impacts highlight why borrowers are hopeful for another cut.

FAQ Section

What Is the Repo Rate and Why Does It Matter?

The repo rate is the interest rate at which the RBI lends to commercial banks. It influences borrowing costs across the economy, affecting loan EMIs, business investments, and consumer spending. A lower repo rate reduces loan interest rates, making borrowing cheaper and stimulating economic growth. For instance, the February and April 2025 cuts lowered the repo rate from 6.5% to 6%, reducing EMIs for millions. With inflation at 3.16% in April 2025, a further cut to 5.75% could save borrowers ₹500–₹1,500/month on large loans, depending on the type and tenure.

Will Sanjay Malhotra Cut the Repo Rate on June 6, 2025?

Most economists predict a 25 bps cut to 5.75%, based on low inflation (3.16% in April 2025) and slowing GDP growth (6.2% in Q3 FY25). A Reuters poll showed 53 of 61 experts expecting this, while SBI Research suggests a possible 50 bps cut. However, global uncertainties like U.S. tariffs and rupee stability could lead to a cautious approach. Malhotra’s data-driven stance and the MPC’s accommodative policy increase the likelihood of a cut. Follow the announcement at 10:00 AM IST on RBI’s YouTube for clarity.

How Will a Repo Rate Cut Benefit Loan Borrowers?

A 25 bps cut could lower loan interest rates by 0.2%–0.3%, reducing EMIs. For a ₹1 crore home loan (20-year tenure), this translates to savings of ₹1,200–₹1,500/month. Auto and personal loans could see similar benefits, boosting affordability. Banks like SBI and HDFC often pass on rate cuts to customers, as seen after the April 2025 cut. This also stimulates sectors like real estate and MSMEs, creating a ripple effect on economic growth. However, borrowers should compare loan offers digitally to maximize savings.

What Are the Risks of a Repo Rate Cut?

While beneficial for borrowers, a rate cut carries risks. Lower rates could weaken the rupee, increasing import costs and potentially fueling inflation. Global trade tensions, such as U.S. tariffs, pose challenges, with the RBI estimating a 20–40 bps GDP growth reduction in FY26. If inflation rebounds due to food price spikes or global factors, the RBI may pause further cuts. Malhotra has emphasized monitoring these risks, ensuring a balanced approach to growth and stability.

How Can I Watch the RBI MPC Announcement Live?

The RBI MPC decision will be announced by Governor Sanjay Malhotra at 10:00 AM IST on June 6, 2025, via a live stream on the RBI’s official YouTube channel and X account. A press conference at 12:00 PM IST will provide further insights. For real-time updates, follow trusted platforms like Financial Express, Business Standard, or Goodreturns. These platforms offer live blogs and expert analysis to keep you informed.

What Is the RBI’s Current Monetary Policy Stance?

The RBI adopted an “accommodative” stance in April 2025, signaling a focus on growth through lower interest rates. This followed a “neutral” stance maintained until February 2025. An accommodative stance means the MPC is likely to either cut rates or maintain the status quo, absent major shocks. This shift reflects confidence in low inflation (3.16% in April 2025) and the need to counter global trade uncertainties. Malhotra’s press conference at 12:00 PM IST will clarify if this stance continues.

Conclusion

The RBI MPC Meeting Live Updates on June 6, 2025, are a pivotal moment for India’s economy. With inflation below 4% and growth needing a boost, Governor Sanjay Malhotra is likely to announce a 25 bps repo rate cut to 5.75%, bringing cheer to loan borrowers by lowering EMIs and stimulating sectors like real estate and MSMEs. However, global uncertainties and rupee stability concerns will shape the RBI’s cautious approach. Stay tuned to the RBI’s YouTube channel at 10:00 AM IST for the announcement and follow trusted financial platforms for real-time insights. What are your thoughts on the potential rate cut? Share your views in the comments or sign up for our newsletter for the latest economic updates!