Rbi on indian economy: The Reserve Bank of India (RBI) has decided to maintain the repo rate at 5.5 percent, keeping in mind the existing domestic and global conditions. Governor Sanjay Malhotra announced this at a press conference after a three -day Monetary Policy Committee (MPC) meeting on Wednesday. He informed that the attitude of monetary policy has been kept neutral, which means that the central bank will maintain flexibility in rates according to the changing economic situation. Let us know ten big things of RBI Governor Sanjay Malhotra-

1-RBI, while presenting the economic picture of the country, has increased the estimate of GDP growth from 6.5 percent to 6.8 percent. This is definitely good news for the country, because since the American high tariff, the economic front is facing challenges. While the estimate of retail inflation has been reduced from 3.1 percent to 2.6 percent. This is the second consecutive time when there is no change in the repo rate.

2- Governor Malhotra said that due to the repo rate being stable, there is no possibility of change in interest rates of housing, vehicles and other retail loans at the moment.

3-He also informed that from February to June this year, RBI has already reduced the repo rate by 1 percent, due to which there has been a decrease of 0.58 percent in the borrowing cost of new loans.

The 4-RBI further stated that India’s foreign exchange reserves have reached $ 700.2 billion, which is sufficient for imports of about 11 months. Also, in the second quarter of the current financial year, domestic economic activities are expected to be raised.

5-Governor admitted that challenges remain globally, but better monsoon, GST rate cuts and other policy measures will lead to inflation and economic growth will gain momentum.

6-Central bank believes that low inflation and monetary softening will lead to both investment and consumption.

7-Now it is clear that the RBI is in “Weight and Watch” mode-that is, at the moment the direction and global situation of the economy will be monitored with stable rates.

Indian Stock Market News: The first business day of the week is going to start today i.e. from June 2, 2025. Everyone will be eyeing the Indian market that what is going to be going on this week. But, in the monetary review meeting of the RBI to be held, the repo rate cut can be made important. That is, the move of the Indian stock market will be decided by several factor this week, including decisions, large economic figures and global trends on the interest rate of the Reserve Bank of India.

Market experts believe that the activities of foreign institutional investors (FII) and developments on the fee front will also affect the perception of investors. Ajit Mishra, Senior Research Vice Chief of Railways Broking Limited, says that everyone will look forward to the monetary policy announcement of the Reserve Bank of India on 6 June. Apart from this, with the beginning of the new month, there will be other figures indicating vehicles sales and economic activities.

Many factor will decide the market move

Ajit Mishra believes that everyone will now be eyeing the flow of foreign institutional investors (FIIs) besides the progress of the monsoon. In addition, globally American bond market trends and events related to the ongoing trade negotiations will also affect investors’ notion.

The Indian economy financial year 2024-25 has grown faster than expected in the last quarter, causing GDP to be 6.5 percent for the entire financial year. Due to this, the size of the Indian economy has increased to $ 3,900 billion. The growth rate of the Indian economy in the January-March quarter was 7.4 percent. Meanwhile, the PMI (Purchasing Manager Index) data for the manufacturing and service sectors coming during the week will also be important for the market.

Repo rate cut will affect

Siddharth Khemka, Research Chief-Sampada Management of Motilal Oswal Financial Services Limited, says that this week the central bank will keep an eye on the shares of the interest rate, especially the shares of the interest rate, especially public banks, amidst expecting the repo rate cut by the central bank. Apart from this, due to the monthly data of sales of trains, area can also be seen in the market.

Also read: Bank account holders will no longer have to pay any charge on zero balance, this bank has taken steps