- On Wednesday, Sanjay Malhotra, the Governor of the Reserve Bank of India (RBI), announced that the Monetary Policy Committee (MPC) has come to a unanimous decision to lower the policy rate by 25 basis points, bringing it down from 6.25% to 6%.
- This marks the RBI’s first rate cut since May 2020, which was announced earlier in February, as the economy has been experiencing a slowdown.
- Experts had anticipated that the RBI would reduce its benchmark repo rate by 25 basis points to 6.00% during its meeting from April 7-9.
- Additionally, the US has imposed a 26% tariff on Indian imports, which is projected to shave off 20 to 40 basis points from India’s GDP growth for the fiscal year 2025-26, potentially dropping it to around 6.1% from the RBI’s previous estimate of 6.7%.
- Many experts believe that this economic pressure is a significant factor behind the RBI’s decision to cut rates further, as it aims to alleviate some of the strain on the economy.
On Wednesday, Sanjay Malhotra, the Governor of the Reserve Bank of India (RBI), announced that the Monetary Policy Committee (MPC) has come to a unanimous decision to lower the policy rate by 25 basis points, bringing it down from 6.25% to 6%.
This marks the RBI’s first rate cut since May 2020, which was announced earlier in February, as the economy has been experiencing a slowdown.
Experts had anticipated that the RBI would reduce its benchmark repo rate by 25 basis points to 6.00% during its meeting from April 7-9.
Additionally, the US has imposed a 26% tariff on Indian imports, which is projected to shave off 20 to 40 basis points from India’s GDP growth for the fiscal year 2025-26, potentially dropping it to around 6.1% from the RBI’s previous estimate of 6.7%.
Many experts believe that this economic pressure is a significant factor behind the RBI’s decision to cut rates further, as it aims to alleviate some of the strain on the economy.