RBI Trims Interest Rate 25bps as Global Headwinds Mount
RBI Trims Interest Rate 25bps as Global Headwinds Mount The important move of RBI aimed at supporting the Indian economy ahead of rising global concerns, the Reserve Bank of India has announced a cut in repo rate of 25 basis points, bringing it down to 6.00%. It is the second consecutive rate reduction in 2025, showing a clear change in RBI's monetary policy stance from “neutral” to “accommodative”. Global markets troubles by intensifying trade tensions specifically the imposition of steep U.S. tariffs on China imports. The central bank is taking proactive steps to protect India from external shocks and stimulate domestic demand. RBI rate over the period The RBI rate cut and stance change mirror concerns about the impact of weak global growth on the Indian economy and MPC’s decision to reduce the repo rate to 6% and adopt an accommodative stance will provide cushion to the domestic economy from adverse effects of global economic instability. The rate cut comes at a time when Ind...