RBI may again cut repo rate by 25 bps

Reserve Bank is likely to cut key inter-est rates again by up to 25 basis points this week to deepen infla-tionary comfort, provide support for ac-commodative monetary policy stance, and there is a pressing need to stimulate growth at a time when several things are hap-pening around the world and within the economy.

- PRESS TRUST OF INDIA

In February, RBI's Mone-tary Policy Committee needed to stay Governor Shaktikanta Das's rate safe to basis points to 6.25 per cent. It was the first reduction since May 2020 and the first revision after two-and-a-half years.

The rate-setting panel, is sched-uled to start deliberations April 7, and the decision will be an-nounced April 9.

The Reserve Bank of India (RBI) has kept the repo rate (short-term lending rate) un-changed at 6.5 per cent 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 per cent.