RBI MPC’s April Meeting: Repo Rate cuts by 25 bps as Trump’s tariffs adds to uncertainties

The RBI's Monetary Policy Committee has recently reduced the repo rate by 25 basis points to 6%. This move aims to inject more liquidity into the system and boost economic activity, particularly when inflation is under control. 

The decision marks the second consecutive cut and is intended to support economic growth amid global trade uncertainties.

The MPC meeting comes in the backdrop of Donald Trump announcing a 26% tariff on India, which could potentially slow GDP growth by 20-50 basis points. 

However,  Donald Trump announced a 90-day pause on tariffs for all countries except China. After this event, the US stock indexes recorded their biggest one-day gains.