The Reserve Bank of India’s Monetary Policy Committee (MPC) has begun its bi-monthly meeting, and all eyes are on what comes next for interest rates on Friday, June 06. With inflation falling to a six-year low of 3.16% in April, there’s growing hope that the RBI may cut rates again — possibly by 25 basis points, or even a bold 50 basis points.

Why is this important?

Lower interest rates can help boost economic growth, especially at a time when global uncertainties like trade tensions are impacting markets. With inflation under control and past rate cuts already in place, the RBI has room to take an aggressive step if needed.

What could benefit?

• Banking: Lower rates could mean higher credit demand.
• Real Estate: Cheaper home loans may make property more affordable.
• Auto Sector: Lower EMIs might encourage more car buyers.

Overall, a rate cut signals that the RBI is focused on supporting growth — which could also improve market sentiment.

Let’s see if the RBI takes a cautious path or a bold step this time.