27 May 2025 : RBI is once again going to cut interest rates, which means good news for home loan customers at the beginning of next month.
This year, the RBI has already cut the repo rate twice. The first time, in February, the repo rate was reduced by 25 basis points. The second time, in April, it was again cut by 25 basis points. Because of this, the repo rate, which was 6.5% at the start of this year, has now decreased to 6%. If the central bank cuts the repo rate by another 25 basis points in June, it will come down to 5.75%.
The RBI’s Monetary Policy Committee (MPC) meeting is scheduled to begin on June 4. After the meetings on June 4 and 5, the central bank will announce its decision on June 6. RBI Governor Sanjiv Malhotra will announce the MPC’s decision on June 6 at 10 AM.
Economists say that inflation has remained below RBI’s target of 4% for the third consecutive month. This gives the central bank an opportunity to reduce interest rates. The central bank is also paying increased attention to economic growth.
In April, RBI changed its monetary policy stance from ‘neutral’ to ‘accommodative’ by cutting the repo rate by 25 basis points. This means that the central bank is now prepared to adopt a more expansionary monetary policy.
EMI on home and other loans will decrease
Under the accommodative monetary policy, RBI increases money supply and cuts interest rates, focusing more on economic growth.
Experts note that on May 24, RBI announced a bumper dividend of ₹2.69 lakh crore for the government. According to economists, this will make it easier for the government to achieve its fiscal deficit target of 4.4%.
Treasury heads of banks say that in the coming days, RBI may take steps to increase liquidity in the system. Because of this, home loan and other loan customers will soon benefit from a reduction in interest rates.
Summary:
Home loan interest rates are likely to decrease next month following an expected RBI rate cut, offering relief and savings to borrowers.