Wed Apr 09 05:41:00 UTC 2025: ## RBI Cuts Repo Rate by 25 Basis Points to 6% Amidst Global Uncertainty
**Mumbai, India** – The Reserve Bank of India (RBI) today announced a 25 basis point cut in the repo rate, bringing it down to 6%. This is the second rate cut this year, following a reduction to 6.25% in February. The decision, unanimously approved by the Monetary Policy Committee, aims to lower borrowing costs for banks and ultimately reduce EMIs for consumers.
RBI Governor Sanjay Malhotra cited a cautious global economic outlook as a factor in the decision. He noted concerns about inflation risks stemming from global uncertainties, particularly in light of the recent imposition of reciprocal tariffs by the US on Indian exports. While acknowledging that these trade frictions could negatively impact net exports and domestic growth, Governor Malhotra expressed confidence in the RBI’s ability to manage the situation. The impact of global developments on growth remains difficult to quantify at this stage, he added.
Despite global headwinds, the Governor highlighted positive domestic indicators. The agriculture sector remains strong, manufacturing is showing signs of revival, and the services sector continues to be resilient. Furthermore, urban consumption is increasing, and the balance sheets of banks and corporates are healthy. The RBI also noted that inflation is currently below target, largely due to a sharp fall in food prices.
Reflecting the cautious outlook, the RBI has revised its GDP growth estimate for the fiscal year downward by 20 basis points to 6.5%.
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