RBI May Again Reduce Interest Rate By 25 Bps

The Reserve Bank is likely to cut key interest rates again by up to 25 basis points this week, as lower inflation provides support for an accommodative monetary policy stance, and there is a pressing need to stimulate growth at a time when the reciprocal tariffs announced by the US is posing a challenge to the global economy.

- Press Trust of India

MUMBAI:

In February, the RBI's Monetary Policy Committee, headed by Governor Sanjay Malhotra, slashed the repo rate by 25 basis points to 6.25%. It was the first reduction since May 2020 and the first revision after two-and-a-half years.

The 54th meeting of the MPC, the rate-setting panel, is scheduled to start deliberations on April 7, and the decision will be announced on April 9.

The Reserve Bank of India (RBI) has kept the repo rate (short-term lending rate) unchanged at 6.5% since February 2023. The last time the RBI reduced the rate was during the Covid times (May 2020), and thereafter, it was gradually raised to 6.5%.