Gå ubegrenset med Magzter GOLD

Gå ubegrenset med Magzter GOLD

Få ubegrenset tilgang til over 9000 magasiner, aviser og premiumhistorier for bare

$149.99
 
$74.99/År

Prøve GULL - Gratis

RBI Did Its Bit: Now It's for Fiscal and Trade Policies to Do the Rest

Mint New Delhi

|

April 11, 2025

The central bank's rate cut will help our economy absorb the US tariff blow but we also need a forceful government response

- SACHCHIDANAND SHUKLA

RBI Did Its Bit: Now It's for Fiscal and Trade Policies to Do the Rest

It may just be a coincidence that the Reserve Bank of India (RBI) announced the rate-cut decision of its Monetary Policy Committee (MPC) on 9 April, the day that the US imposed 'reciprocal tariffs': i.e., additional ad-valorem import duties at higher-than-baseline rates aimed at a group of targeted countries, including India. Yet, this global backdrop loomed large over RBI's policy call as India's central bank rightly persisted with 'more of the same'. It continued to lean towards nurturing growth. It cut the repo rate again by 25 basis points to 6%, having delivered its first rate cut since May 2020 in its last policy review two months earlier. In the period since, it has also continued to pour liquidity into the system through a cash reserve ratio cut, open market operations, variable repo rate auctions and swaps, while going soft on macro-prudential tightening.

What else has RBI done? It has finally changed its stance from "neutral" to "accommodative," accompanied by a clarification from Governor Sanjay Malhotra that this should be seen only in conjunction with rates and not be confused with its approach to liquidity management. This reaffirms that its next move will only be either another rate cut or the status quo, whereas the earlier stance implied that RBI could also hike its policy rate, which is now very unlikely. This will provide much-needed clarity for policy transmission, so that bank deposit and lending rates also soften.

FLERE HISTORIER FRA Mint New Delhi

Mint New Delhi

Mint New Delhi

WHAT A YEAR AT COLUMBIA TAUGHT ΜΕ

An Indian journalist at Columbia University navigated a tumultuous year, learning unusual life lessons

time to read

8 mins

October 02, 2025

Mint New Delhi

Mint New Delhi

Central bank seen keeping its options open on Tata Sons IPO

A day after the Reserve Bank of India’s deadline for the Tata Group to list its holding company, Tata Sons, passed, the central bank appears to be still weighing its decision, with governor Sanjay Malhotra’s comment leaving the matter open to interpretation.

time to read

2 mins

October 02, 2025

Mint New Delhi

Mint New Delhi

Festive demand, tax cut power up auto sales in Sep

Powered by tax cuts and festive spirits, automobile sales took off in September, cheering manufacturers across the board.

time to read

3 mins

October 02, 2025

Mint New Delhi

FPIs pull $2.7 bn off Indian stocks in Sep

Foreign portfolio investors (FPIs) withdrew $2.7 billion from Indian equities in September, extending their selling streak for a third straight month and putting 2025 on course for record foreign withdrawals, data from the National Securities Depository showed.

time to read

1 min

October 02, 2025

Mint New Delhi

RBI keeps options on Tata Sons listing

in debt around the same time. The RBI has yet to formally grant an exemption or extension.

time to read

1 min

October 02, 2025

Mint New Delhi

RBI did well to preserve its rate policy firepower

Subdued inflation didn't make India's central bank budge on its policy rate. Its expectation of firmer growth partly explains this. A monetary stimulus is best used when it's most needed

time to read

2 mins

October 02, 2025

Mint New Delhi

Mint New Delhi

No rate cut, but RBI steps up to lift credit, buoy biz

Hint of December rate cut after two pauses; multiple measures to ease credit flow

time to read

3 mins

October 02, 2025

Mint New Delhi

Mint New Delhi

Hamas indicates it is open to Trump Peace Plan as it faces pressure from Muslim nations

Hamas has indicated it is open to accepting President Trump’s peace plan for Gaza but is asking for more time to review its conditions, Arab mediators said, as the militant group faces intensifying pressure from Muslim governments to agree to the Israel-backed proposal to end the devastating war.

time to read

4 mins

October 02, 2025

Mint New Delhi

Mint New Delhi

Chip leaders dangle juicy offers to snap up top campus talent

Chip giants including Nvidia Corp., Intel Corp., and Arm Holdings Plc. are aggressively recruiting at India’s elite engineering schools, chasing top talent critical tosupremacy in theage ofartificial intelligence (AI).

time to read

3 mins

October 02, 2025

Mint New Delhi

Mint New Delhi

Top firms tick boxes, but lag on diversity, independence

India’s top 100 listed companies have shown progress in corporate governance practices, but persistent gaps remain in board meeting attendance, diversity, and leadership independence.

time to read

2 mins

October 02, 2025

Listen

Translate

Share

-
+

Change font size