Tariff Tension RBI Action: There is tension all over the world regarding the global trade war due to tariff hikes. Due to this, there is a lot of volatility in the stock market. Meanwhile, now the entire focus is on the next monetary policy committee meeting of the Reserve Bank of India (RBI).
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Tariff Tension RBI Action: Second Day of RBI Monitoring Meeting
The first monetary policy committee meeting of the Reserve Bank in the new financial year began on Monday, 7 April. Today, Tuesday, is the second day of this meeting. The decisions taken in the meeting of the Monetary Policy Committee chaired by Governor Sanjay Malhotra will be announced tomorrow, Wednesday, 9 April.
Hope For Relief from the Meeting
In this meeting, a reduction of 0.25% in the repo rate has been predicted. That is, loans may become cheaper in the coming days, this will also reduce the burden of EMI. Let us tell you that in its last meeting which was held in February this year, RBI had reduced the key interest rate repo by 0.25 % to 6.25 %.
According to Bank of America (BofA) Global Research, RBI can give a big relief to the common man considering the Indian economy. According to this research, the country’s central bank RBI can cut the repo rate.
Tariff Tension RBI Action: What are the Details
According to different analysts, relief announcements can be made in the monetary policy committee meeting of RBI. Most analysts believe that RBI can cut interest rates in April and June to support the economy before global issues increase.
Industry analysts expect a rate cut of 25 basis points (bps) in the upcoming policy meeting. With inflation easing, economic growth slowing, crude oil prices falling, and US bond yields falling, analysts believe the RBI now has room to act. However, there is some debate on what stance the RBI will take.
RBI Governor tackles Trump tariffs: Headwinds to lower India’s FY26 GDP growth
— Business Today (@business_today) April 9, 2025
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What Does the SBI Report Say?
An SBI research report said global growth could face significant challenges due to the interlinked effects of trade-related tariff barriers, sharp currency volatility and fragmented capital flows. According to the report, a rate cut of 0.25 percent is expected in the policy review meeting of April 2025. The total rate cut cycle can be up to one percent. After a gap in the meeting of June 2025, two more cuts can be made in August and October.
Jay Chavda He is the Founder and Writer of businesspulsecare.com. He is an I.T Engineer, Freelancer, Businessman. He posts Business, Stock/Share Market, Finance Related News and updates on the website. 🔗