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RBI to announce Monetary Policy Committee decision today. Will governor Sanjay Malhotra cut the repo rate?
RBI governor Sanjay Malhotra-led MPC is expected to announce a 25-basis point cut in the repo rate, amid easing inflation and signs of slowing economic growth.
The Reserve Bank of India (RBI) is set to announce its first monetary policy decision for the fiscal year 26 on Wednesday, April 9, amid rising global trade tensions following tariff hikes by the United States.
The Monetary Policy Committee (MPC), led by RBI governor Sanjay Malhotra, has held deliberations from April 7 to 9, with the policy outcome expected later this morning.
A post-policy press conference by Malhotra is scheduled for 12 noon and will also be livestreamed central bank’s official YouTube channel.
The meeting comes at a time when concerns over a global slowdown have grown, fuelled by US tariff moves that are likely to impact emerging markets, including India.
The governor Sanjay Malhotra-led MPC is widely expected to announce a 25-basis point cut in the repo rate, amid easing inflation and signs of slowing economic growth, reported Livemint.
The report added that economists also expect the RBI to shift its policy stance from ‘neutral’ to ‘accommodative’, indicating a possible readiness for more rate cuts ahead.
Malhotra’s comments on India’s macroeconomic outlook and the rising global trade risks will be closely tracked.
The RBI had cut the benchmark repo rate by 25 basis points to 6.25 per cent in its previous policy review, the first such move in nearly five years, while maintaining a neutral stance.
Indian markets rise sharply despite global trade worries
Indian equities ended higher on Tuesday with both benchmark indices posting strong gains despite lingering concerns over the global trade war.
The Nifty 50 rose 1.69 per cent to close at 22,535.85, while the BSE Sensex jumped 1.49 per cent to end at 74,227.08.
Indian markets are likely to stay relatively unaffected by global concerns, given their limited direct exposure to the tariffs, said A Balasubramanian, chief executive of Aditya Birla Sun Life AMC.
“Additionally, falling oil prices could help reduce inflation, potentially leading to further rate easing from the Reserve Bank of India to support growth,” Reuters quoted Balasubramanian as saying.
