Mumbai, Jun 5 (PTI) Reserve Bank Governor Sanjay Malhotra will announce the bi-monthly monetary policy on Friday amid widespread expectations of a third consecutive rate cut of 25 basis points or even bigger to propel economic growth against the backdrop of trade tensions triggered by Trump tariffs.

The RBI's rate-setting panel Monetary Policy Committee (MPC) started its three-day deliberations on Wednesday.

The central bank reduced the key benchmark lending rate (repo) by 25 bps points each in February and April this year on the recommendations of the governor-headed MPC.

Malhotra will present the monetary policy statement at 10 am on June 6 (Friday), the Reserve Bank said on Thursday.

Most of the experts are of the view that RBI will go for a 25 bps reduction in the repo this time also, though a research report by the State Bank of India (SBI) sees a jumbo rate cut of 50 bps.

In response to the 50-bps cut in the policy repo rate since February 2025, most of the banks have reduced their repo-linked external benchmark-based lending rates (EBLRs) and the marginal cost of funds-based lending rate (MCLR), according to an assessment by the RBI.

A lowering of the repo rate leads reduction in lending rates by banks, which, in turn, brings down EMIs for retail and corporate borrowers.

The MPC consists of three members from the RBI and three external members appointed by the government.

RBI members are: Governor Sanjay Malhotra, Deputy Governor M Rajeshwar Rao, and Executive Director Rajiv Ranjan.

The external members are: Nagesh Kumar, Director and Chief Executive, Institute for Studies in Industrial Development, New Delhi; Shri Saugata Bhattacharya, Economist, Mumbai; and Professor Ram Singh, Director, Delhi School of Economics, Delhi. PTI NKD CS NKD BAL BAL

Monetary policy rate cut expected; announcement likely to lower bank lending rates and reduce loan EMIs. The central bank will issue a bi monthly monetary policy statement after a three day MPC meeting, with markets widely expecting a further repo rate reduction following prior cuts earlier in the year. The earlier reductions have led most banks to lower repo linked external benchmark lending rates and MCLRs, and a lower policy rate is intended to transmit through bank lending rates to reduce EMIs for borrowers. The MPC comprises three internal central bank members and three government appointed external members.