RBI Monetary Policy Analysis – June 2025
Overview On June 6, 2025, the Reserve Bank of India (RBI) introduced a notable monetary policy adjustment to promote economic expansion amid moderating inflation. This analysis explores the primary policy changes, identifies sectors likely to gain, and evaluates selected stocks for potential market movements. Major Announcements Repo Rate Reduction : Lowered by 50 basis points to 5.5%, the third cut in 2025, totaling 100 basis points. CRR Cut : Reduced by 100 basis points to 3%, injecting ~₹2.5 lakh crore into the banking system. Policy Stance Shift : Moved from "Accommodative" to "Neutral," adopting a data-driven approach. Inflation Projection : FY26 CPI inflation forecast revised to 3.7% from 4%. GDP Outlook : FY26 real GDP growth estimate unchanged at 6.5%. Sectors Likely to Benefit Banking & Financial Sector Impact : CRR cut boosts liquidity, potentially driving loan growth. Considerations : Lower repo rates may reduce margins, but higher lending could off...