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Samco Securities
June 6, 2025 at 06:49 AM
RBI MPC Highlights: Repo Rate Slashed by 50 bps to 5.5%, CRR Cut to 3% 📉 The RBI’s June 2025 MPC meeting delivered a strong pro-growth signal amidst a global environment clouded by uncertainty. In a front-loaded move, the MPC slashed the repo rate by 50 bps to 5.50%, with corresponding adjustments to the SDF and MSF rates at 5.25% and 5.75% respectively🔽 The inflation outlook was revised downward to 3.7% (from 4.0% earlier), giving the central bank headroom to act decisively. Importantly, the policy stance was shifted from ‘accommodative’ to ‘neutral’.📊 To address tighter banking liquidity, RBI announced a calibrated CRR cut of 100 bps from 4% to 3% which will be implemented in four equal tranches starting September. This move alone is expected to infuse ₹2.5 lakh crore into the banking system Overall, the policy outcome signals a clear intent to stimulate credit and support growth without compromising financial stability. With improving liquidity, lowering inflation, and strong asset quality, the banking sector is well-placed to benefit setting the stage for improved financial performance as well as share prices in banking stocks in the coming quarters📈 Stay updated, visit 👉https://sam-co.in/6S

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