Reserve Bank of India Governor Sanjay Malhotra stated that India is actively engaging with the US administration on trade matters, coinciding with the implementation of tariffs announced by President Donald Trump.
In his address to announce the decisions made by the Monetary Policy Committee (MPC), Governor Malhotra remarked, "It is currently difficult to quantify the impact of global developments on growth." He added, "The global economic outlook is rapidly evolving, and the recent trade tariff measures have heightened uncertainties, clouding the economic forecast across regions and presenting new challenges for global growth and inflation. Amidst this turbulence, the US dollar has weakened significantly."
He added that while global trade and policy uncertainties will impede growth, there is no concern about managing domestic growth.
Key Takeaways
In its first bi-monthly monetary policy of FY26, the six-member Monetary Policy Committee (MPC) of Reserve Bank of India decided on 25 bps cut in key interest rates in the backdrop of moderating inflation and the need to stimulate growth as Trump tariffs pose severe challenges to the global economy.
The decision was announced by Governor Sanjay Malhotra on April 9. "MPC voted unanimously to cut repo rate by 25 bps to 6 per cent," said Malhotra.
In February, the MPC slashed the repo rate by 25 basis points to 6.25%. It was the first reduction since May 2020 and the first revision after two-and-a-half years.
The US imposed a 26% tariff on Indian imports and is expected to reduce India라이브 바카라 GDP growth for FY 2025-26 by 20–40 basis points, potentially lowering it to around 6.1% from the RBI라이브 바카라 earlier forecast of 6.7%.
Additionally, the RBI Governor added that lifting the economy will be a joint effort of the government and RBI. “FY26 has begun on an anxious note. Recent trade tariff measure a headwind for the global economy. Don't see high concern for India inflation from tariffs,” Governor said.
In other announcements, Governor said that the prospects of agriculture sector remain bright, in the light of healthy reservoir levels and robust crop production.
