Monetary Maneuvers: RBI's Potential Rate Cuts Amid Global Challenges

The Reserve Bank of India is reviewing its monetary policy, with expectations of a 25 basis point rate cut to stimulate growth amid global economic challenges. Experts anticipate further rate reductions, as the policy aims to enhance financial inclusion and support growth, especially under U.S. tariff pressures.

As global economic pressures loom, the Reserve Bank of India commenced its bi-monthly monetary policy review on Monday. Market analysts widely anticipate a 25 basis point cut in key interest rates, aiming to stimulate growth amidst moderating inflation and international trade challenges.

The six-member Monetary Policy Committee, chaired by Governor Sanjay Malhotra, will announce its decision on Wednesday. In their previous meeting in February, the committee reduced the repo rate to 6.25 percent, marking the first adjustment since May 2020.

Sectors eagerly await the outcome, hoping for policies that will spur financial inclusion. Industry leaders urge the RBI to consider significant rate cuts to counteract potential GDP impacts from new U.S. tariffs on Indian imports.

(With inputs from agencies.)