RBI MPC Meeting Live Updates: RBI Monetary Policy Meeting 2025 Today Live MPC Key Expectation RBI Repo Rate Cut
RBI Governor Sanjay Malhotra announces 25 bps repo rate cut. (Express Photo by Amit Chakravarty)
RBI Repo Rate Cut, RBI Monetary Policy Meeting 2025 Today Live Updates: RBI Governor Sanjay Malhotra announced a 25 basis point cut in policy repo rate on Wednesday, saying the central bank is targeting non-inflationary growth. The RBI Governor said global economy was going through a period of uncertainty, posing challenges to policymaking, alluding to the sweeping tariffs announced by US President Donald Trump. The latest round of reciprocal tariffs kicked in minutes before Malhotra started speaking.
RBI’s second rate cut for the year: Wednesday’s action was the second successive rate cut by the RBI’s Monetary Policy Committee. A lower rate spurs growth as loans are expected to become cheaper.
Experts earlier predicted that RBI will again reduce the rate by 25 bps on Wednesday against the backdrop of moderating inflation and the need to stimulate growth as Trump tariffs pose severe challenges to the global economy, a move that the central bank ended up making in view of the current global economic developments.
Trump tariffs to impact merchandise growth: In his remarks, the RBI Governor conceded that tariffs were expected to impact merchandise exports. He also said that India’s GDP was seen growing at 6.5% in FY26. The inflation was forecast at 4%. However, the central bank’s rate-setting body can’t sit at ease after US President Donald Trump announced sweeping tariffs. Trump has announced a 26 per cent reciprocal tariff rate on India, effective April 9, which can fuel inflationary pressures going ahead. Economists have also warned of likely recessionary effects at play due to the tariffs, which can hike costs and tamp down demand.
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