RBI Cuts Repo Rate by 25 bps to 6%: All You Need to Know
The Reserve Bank of India’s (RBI) Monetary Policy Committee (MPC) on April 9 decided to slash the interest rates by 25 basis points (bps) i.e., from 6.25% to 6.5%.
RBI Cuts Repo Rate by 25 bps to 6%: All You Need to Know
The Reserve Bank of India’s (RBI) Monetary Policy Committee (MPC) on April 9 decided to slash the interest rates by 25 basis points (bps) i.e., from 6.25% to 6.5%.
Experts had suggested that the central bank will cut its benchmark repo rate by 25 basis points (bps) to 6.00 per cent at the conclusion of its April 7-9 meeting.
India’s GDP is set to decline by 20–40 basis points in 2025-26 after the US levied a 26% tariff on Indian imports, lowering India’s GDP projections to 6.1% from the RBI’s earlier forecast of 6.7%. According to the experts, this is one of the key reasons the central body decided to further reduce the rates.
Growth prospects
According to RBI governor Sanjay Malhotra, GDP growth is set to clock at 6.5%.
“Real GDP is now projected for this fiscal year at 6.5 per cent in the first quarter, 6.7 per cent in the second quarter, 6.6 per cent in the third quarter and 6.3 per cent in the fourth quarter,” he said.
“This is on top of a 9.2 per cent growth rate observed in the previous year,” he added. Throwing light on the agrarian economy, Malhotra said that the agriculture sector during the current year remains positive due to healthy reservoir levels and robust crop production.
