RBI's Key Monetary Policy Review Amid Global Tariff Turmoil

The RBI, led by Governor Sanjay Malhotra, prepares to announce its first bi-monthly monetary policy amid expectations of a 25 basis points cut to the repo rate. This decision coincides with new US tariffs on India, affecting global trade dynamics and urging India to stimulate domestic demand.

RBI Governor Sanjay Malhotra is set to announce the central bank's first bi-monthly monetary policy, with financial markets anticipating a 25 basis points reduction in the repo rate. The Monetary Policy Committee, chaired by Malhotra, has been deliberating possible credit policy revisions amid global economic pressures.

In a backdrop marked by US President Trump's announcement of a 26% reciprocal tariff on India, experts predict that the RBI will further slash the rate to foster domestic growth. February saw the committee cut rates by 25 basis points, and expectations run high for a follow-up cut on April 9.

Analysts from firms such as HSBC Global Research and Goldman Sachs forecast additional rate cuts throughout the year, noting that subdued domestic activity, stable inflation, and lower crude prices have created favorable conditions for monetary easing.

(With inputs from agencies.)