New Delhi, June 2 -- The Reserve Bank of India is anticipated to announce a significant 50 basis points reduction in the repo rate during its monetary policy announcement scheduled for June 6, according to a recent analysis by the State Bank of India.

The assessment suggests that such a substantial rate cut could serve as a catalyst to reinvigorate the credit cycle, with total rate reductions potentially reaching 100 basis points over the complete easing cycle.

The banking sector is currently experiencing extended surplus liquidity conditions, which has accelerated the repricing of liabilities during the ongoing rate-easing environment.

Commercial banks have already adjusted their savings account interest rates downward to a floor rate...