The Reserve bank of India's much-awaited monetary policy meeting is being held in Mumbai. As the meeting that began on june 4 will conclude today, it is said that there are chances of announcements regarding interest rate cuts after the meeting. Since the beginning of 2025, the bank OF INDIA' target='_blank' title='reserve bank of india-Latest Updates, Photos, Videos are a click away, CLICK NOW'>reserve bank of india has reduced the repo rate by 25 basis points each, for a total of 50 basis points. Therefore, it is said that important discussions are being held regarding reducing interest rates in this meeting as well and an announcement regarding it will be made today.
Will it reduce interest rates?: Mahendra Patil, Chairman of mp Financial Advisory Service, and Diwan Sharma, Chairman of Green Portfolio PMS, have predicted that this time too, an announcement will be made by reducing it by 25 basis points. They say that the Reserve bank is forced to cut interest rates to maintain the current economic growth rate, increase liquidity among the people, and reduce inflation.

 Will there be a third interest rate cut?: If the Reserve bank makes such an announcement, it will be the third consecutive cut in the repo rate this year. Previously, the Reserve bank cut the repo rate by 50 basis points in 2012, 2015, and 2020 to maintain economic growth in the country. However, the US Federal Reserve has kept its repo rate unchanged at 4.25 to 4.50 percent.

What will happen in the stock market: Meanwhile, market experts say that there are various expectations in the stock market as the Reserve bank will make an announcement regarding the interest rate after the monetary policy meeting today. Prannoy Agarwal, director of Stoxkart, says that if the Reserve bank reduces the interest rate, we can see a rise in the stock market. He says that investors should focus on stocks related to banking, real estate, and automobile sectors today.

What should investors do: He says that when the bank OF INDIA' target='_blank' title='reserve bank of india-Latest Updates, Photos, Videos are a click away, CLICK NOW'>reserve bank of india reduces the repo rate, many people will come forward to take loans from banks and it will encourage corporate investments. He says that stock market investors should be careful today and that there will be volatility in the stock market based on the RBI announcement.
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Sowmiya Sriram

06/06/2025 07:43 AM