On June 6, the RBI may lower the repo rate once more, which could lower EMIs and lower the cost of personal, auto, and home loans. As long as inflation remains low, borrowers may experience significant relief.

The Wait for June 6: Will RBI Bring Relief Again?

A fresh wave of hope is building for borrowers across India. Experts predict that the Reserve Bank of India (RBI) will cut the repo rate for the third time this year as it gets ready for its upcoming meeting of the Monetary Policy Committee (MPC). And this could mean one thing for millions: cheaper loans and lighter EMIs.

Cooling Inflation Signals RBI’s Next Move Toward a Rate Cut

The key reason behind this expected move is simple, retail inflation is behaving itself. Inflation fell to its lowest level in six years in April, at just 3.16%. That’s a sign, not just a number. It tells the RBI that prices are stable enough to safely cut rates and give the economy a boost.

A 0.25% Cut Could Be Coming

Most financial analysts are pointing to a likely 0.25% cut in the repo rate during this policy review. That would bring the total rate cut this year to 0.75%. It might sound small, but for borrowers, it could mean a noticeable dip in monthly repayments.

RBI Already Dropped Hints Back in April

Back in April, the RBI shifted its tone, changing its stance from “neutral” to “accommodative.” That one word sent a clear message, more cuts could follow. And now, with inflation under control, the stage seems set for another move.

Banks Already Responding

Even before this upcoming decision, many banks have started lowering interest rates for loans. That’s because earlier cuts in February and April brought the repo rate down to 6%, and banks are quick to adjust their rates accordingly. Some borrowers are already seeing their EMIs fall and more relief could be coming.

Experts See a Deeper Rate Cycle

According to Aditi Nayar, Chief Economist at ICRA, the RBI might not stop here. She predicts the repo rate could fall to 5.25% by the end of this rate-cut cycle, as inflation is expected to stay near 4% through the year.

So, all eyes now turn to June 6. If the RBI pulls the trigger again, borrowers could breathe easier, and India’s economy might just get the gentle push it needs.