Market News
RBI likely to hold repo rate at 5.25% on June 5 amid inflation worries
Published 2026-06-01 · Bazaar Watch Research
- RBI is expected to keep the policy repo rate unchanged at 5.25% following its 3-5 June meeting.
- A Mint poll of 10 economists indicates a consensus for the central bank to maintain its neutral policy stance.
- Economists believe rate hikes are ineffective for managing currency depreciation, despite the rupee's recent slide.
- Current retail inflation at 3.48% remains below the RBI's 4% target, not warranting an immediate rate hike.
- Borrowers may see stable EMI costs for loans as interest rates are expected to remain unchanged.
- Importers could face higher costs due to the depreciating rupee, potentially impacting their profit margins.
- Monitor RBI's future commentary for signs of hawkishness, especially regarding inflation and monsoon outlook.
- Consider diversifying investments to sectors resilient to inflation, given potential upward revisions in forecasts.
