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Reserve Bank's MPC meeting begins; 25 basis points cut in repo rate expected, decision on Wednesday
RBI MPC: Trade-related tariff barriers, sharp fluctuations in the currency market, and soft global capital flows have caused a slowdown in the world market. In such a situation, during the RBI MPC meeting that started on Monday, a decision is expected to be taken in the interest of the Indian economy. Let us know about this in detail.
The Reserve Bank on Monday initiated its Monetary Policy Committee meeting, which is after a two-month gap. Considering the easing on the inflation side, the MPC is likely to decrease interest rates by 25 basis points. An issue has come in the face of the global economy after US President Donald Trump imposed retaliatory tariffs. In the wake of the current global environment, a growth boost is also required from the MPC.
The decision of the six-member Monetary Policy Committee (MPC) under the leadership of Governor Sanjay Malhotra will be made on Wednesday. The MPC had last cut the repo rate by 25 basis points to 6.25 percent in February. This was the lowest cut since May 2020 and the second revision in it since a gap of two and a half years. The RBI's rate formation committee is likely to cut another 25 basis points this week, according to experts.
An SBI research report said that trade-related tariff barriers, sharp fluctuations in the currency market, and soft global capital flows could pose significant obstacles to growth around the world. No country is untouched by these conditions. The report further said that the direction of change in interest rates by central banks may remain liberal.
