High Hopes for RBI Rate Cut Amid Global Uncertainties
The Reserve Bank of India's Monetary Policy Committee, led by Governor Sanjay Malhotra, is considering a rate cut to boost economic growth amidst external challenges like Trump's tariff policies. Experts predict rate cuts of 25 to 50 basis points, with inflation remaining low and economic momentum improving.
- Country:
- India
The Reserve Bank of India's rate-setting committee convened for a three-day session amid rising anticipation of significant interest rate cuts aimed at bolstering economic growth amidst global uncertainties, particularly those induced by Trump's trade tariffs.
The Monetary Policy Committee (MPC), Chaired by Governor Sanjay Malhotra, will reveal its decision on Friday. Previously, the RBI lowered the repo rate by 25 basis points each in February and April, standing at 6% now.
Experts suggest another 25 basis points cut is expected on Friday, with a potential for a more substantial 50 basis points reduction in June, as banks align their lending rates to the new repo rate. Falling inflation offers the RBI space for further easing, with forecasted substantial benefits for MSMEs and NBFCs.
(With inputs from agencies.)
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