RBI monetary policy: Expect 25-bp rate cut, but no change in stance

As headline inflation moves closer to RBI's target, and growth momentum remains elusive, a rate cut may be on the cards

In March, the US Federal Reserve kept policy rates unchanged, extending the pause that began in January after three successive rate cuts. It preferred to wait and assess the impact of US President Donald Trump’s economic policies. The Fed is now closely watching two key factors: Is inflation heading towards the 2 per cent target? And is the US economy weakening more than what the central bank expected?

 

For the second consecutive time, the Fed has held borrowing costs steady after bringing them down to the 4.25–4.5 per cent range in December 2024 — a level