The Reserve Bank of India’s Monetary Policy Committee (MPC) began its three-day meeting on Tuesday, with expectations running high for a policy rate cut to support economic growth in the face of external uncertainties, including recent tariff moves by the US.The committee, chaired by RBI Governor Sanjay Malhotra, will announce its decision on Friday. Analysts and economists are widely anticipating either a 25 basis points (bps) cut or a surprise 50 bps reduction in the repo rate, which currently stands at 6 per cent following two 25 bps cuts in February and April 2025.If the central bank opts for another cut, it would mark the third consecutive reduction in the benchmark lending rate this year.In response to the earlier 50-bps easing, most banks have already lowered their external benchmark-linked lending rates (EBLRs) and marginal cost of funds-based lending rates (MCLR).While many experts anticipate a gradual cut, SBI Research suggests a more aggressive move. “The central bank may go in for a ‘jumbo’ rate cut of 50 bps in June itself,” the research note said, as quoted PTI.CareEdge Ratings said the current inflation trends give the RBI room to prioritise growth. “This opens room for further monetary policy easing. We expect the RBI MPC to cut the policy rate by another 50 bps in FY26 (including 25 bps in June), with chances of a deeper rate cut cycle if growth falters,” the agency noted.Deepak Aggarwal, Co-founder and Co-CEO of Moneyboxx Finance, echoed this view, saying, “With inflation expected to remain below the RBI’s 4 per cent target and growth holding steady, the upcoming MPC meeting presents an encouraging window for a calibrated rate cut. A lower interest rate regime, supported by targeted liquidity measures, can meaningfully strengthen credit flow to MSMEs and NBFCs, especially those serving rural and semi-urban regions.”Raoul Kapoor, Co-CEO of Andromeda Sales and Distribution, noted strong expectations for another round of easing. “Should another 25 bps rate cut occur, it would bring the cumulative rate reduction in the calendar year 2025 to a notable 75 basis points,” he said. “The easing of rates not only provides immediate financial relief but also stimulates consumer spending and investment, potentially bolstering overall economic growth. As a result, both existing and potential borrowers can look forward to a more favourable borrowing landscape in the coming months.”Mandar Pitale, Head of Financial Markets at SBM Bank (India), highlighted that the meeting follows a strong GDP growth print of 7.4 per cent, well above market expectations of 6.8 per cent. “We expect a 25 bp cut in policy rate at the June MPC meeting. This, coupled with the ongoing accommodative stance, will position MPC to react to any data surprises on either side,” Pitale said, adding that another 25 bps cut could follow in August.Rohit Arora, CEO and Co-Founder of Biz2X & Biz2Credit, sees a cut of 25–50 bps as likely. “This would provide a timely boost to credit flow, especially for MSMEs and housing, while reinforcing growth momentum. While the RBI remains focused on domestic conditions, global cues like the US Fed’s projection of two rate cuts in 2025 also provide comfort on the external front,” Arora said.The six-member MPC includes three RBI officials and three external members appointed by the government. Along with Governor Sanjay Malhotra, the RBI is represented by Deputy Governor M Rajeshwar Rao and Executive Director Rajiv Ranjan. The external members are Nagesh Kumar, Director and CEO of the Institute for Studies in Industrial Development; Saugata Bhattacharya, economist; and Professor Ram Singh, Director of the Delhi School of Economics.