Reserve Bank's Anticipated Rate Cuts Aim to Boost Growth Amid Global Uncertainty

The Reserve Bank of India is expected to announce a third consecutive rate cut of 25 basis points to stimulate economic growth. This decision comes amid low inflation rates and global uncertainty caused by US tariff measures. Experts predict further cuts in the upcoming policy reviews.

The Reserve Bank of India is poised to implement a third consecutive rate cut of 25 basis points this Friday, aiming to bolster economic growth as inflation remains below the 4 percent benchmark. This decision comes amid ongoing global uncertainty prompted by US tariff strategies.

The Monetary Policy Committee, led by RBI Governor Sanjay Malhotra, has already reduced the repo rate by 25 basis points in February and April, bringing it down to 6 percent. The committee, now adopting an accommodative stance, is expected to further reduce rates to promote growth.

With inflation forecasts indicating a continuation below the 4 percent mark, economists like Madan Sabnavis and Aditi Nayar anticipate additional cuts. The Reserve Bank has also pledged to manage liquidity operations to support the productive sectors of the economy, maintaining inflation within the targeted range.

(With inputs from agencies.)