RBI Cuts Repo Rate to 6%, Shifts Stance to 'Accommodative' Amid Global Trade Concerns

RBI Cuts Repo Rate to 6%, Shifts Stance to 'Accommodative' Amid Global Trade Concerns

Last Updated Apr - 09 - 2025, 02:58 PM | Source : Fela News

On April 9, 2025, RBI slashed the repo rate by 25 basis points to 6% and adopted an 'accommodative' stance to support the economy amid rising global trade tensi

The Monetary Policy Committee( MPC) of the RBI on Wednesday, 9 April 2025, unanimously decided to reduce the repo rate by 25 base points to 6. It has also decided to change its  station from “ neutral ” to “ accommodative ”. RBI governor Sanjay Malhotra explained that in the Indian  environment, an “  friendly ” policy means that MPC in  unborn  financial  programs will either maintain status quo or reduce the repo rate further. 

 Repo rate is the rate at which the central bank( RBI) lends  plutocrat to  marketable banks. Since, the rate at which the  plutocrat is being taken has been reduced, banks will have  further  plutocrat to advance consumers and hence,  plutocrat  force will rise in the frugality. 

  The Donald Trump administration has  blazoned a 26 tariff on all  significances from India along with other countries with varying complementary tariff rates. This might lead to a global trade war and recession in the world frugality and hence to steer the country down from that, RBI has taken this move. 

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