Repo rate may be eased by 75-100 bps with inflation staying benign

The US has proposed a 26 per cent reciprocal tariff on India, which will take effect from April 9

To mitigate the impact of reciprocal tariffs imposed by the US, which is likely to slow down economic growth, the Reserve Bank of India (RBI) may consider cutting the policy repo rate by 75-100 basis points (bps) as inflation is expected to stay benign, according to brokerages.

 

The RBI’s six-member Monetary Policy Committee (MPC) had reduced the repo rate by 25 bps in February, marking the first such cut in five years. It is widely expected that the MPC, which is meeting next week for the first time in the current financial year (FY26), will likely cut the repo rate