RBI Repo Rate Cut: Earlier in February, the Reserve Bank of India’s six-member monetary policy committee (MPC) announced its first rate cut since May 2020 amid a slowdown in the economy.
Reserve Bank of India (RBI) Governor Sanjay Malhotra on Wednesday said that the Monetary Policy Committee (MPC) has unanimously decided to reduce the policy rate by 25 basis points (bps), from 6.25 per cent to 6 per cent.
Earlier in February, the Reserve Bank of India’s six-member monetary policy committee (MPC) announced its first rate cut since May 2020 amid a slowdown in the economy.
All experts had suggested that the RBI is expected to cut its benchmark repo rate by 25 basis points (bps) to 6.00 per cent at the conclusion of its April 7-9 meeting.
The US imposed a 26 per cent tariff on Indian imports and is expected to reduce India’s GDP growth for FY 2025-26 by 20–40 basis points, potentially lowering it to around 6.1 per cent from the RBI’s earlier forecast of 6.7 per cent.
Experts are of the view that this is one of the key reasons why the RBI has decided to further cut rates, as it will help counter economic strain.
