RBI cuts rate by 25bps amid tariff war; here's how experts interpret it

The repo rate cut by the RBI reinforces the central bank's commitment to support economic growth

The Reserve Bank of India (RBI) governor Sanjay Malhotra, on Wednesday, April 9, 2025, announced to cut the repo rate by 25 basis points (bps), bringing it down to 6 per cent from 6.25 per cent. The RBI's Monetary Policy Committee (MPC) also decided to change the policy stance to 'accommodative' from 'neutral'.  This was the second consecutive rate cut announced by the central bank, which comes amid escalating trade war worries between the US and rest of the world. 

  The RBI decision aligned with market expectations as market analysts welcomed the move,