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MPC Members Flag Tariff Impact on India's Growth
April 24, 2025
|Hindustan Times Chandigarh
Worries about the global tariff war hung over the Monetary Policy Committee's (MPC) meeting earlier this month, minutes of the meeting released on Wednesday showed.
MUMBAI: Members pointed to the potential impact of tariffs on India's growth, as they made the case for a lower repo rate and a change in policy stance. The six-member rate-setting panel on 9 April voted unanimously for a 25 basis points repo rate cut and a change in policy stance to accommodative, with an aim to support growth. The committee also lowered the growth forecast for FY26 to 6.5% from 6.7% earlier.
An uncertain global environment has amplified downside risks to growth, Reserve Bank of India (RBI) governor Sanjay Malhotra said at the meeting. However, he was more optimistic than other MPC members about the impact of tariffs on India's growth outlook.
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