RBI goes for 25 bps rate-cut
Falling on the expected lines, the Reserve Bank cut key policy rate by 25 basis points today
image for illustrative purpose
Mumbai, Apr 09: Falling on the expected lines, the Reserve Bank cut key policy rate by 25 basis points today. This announcement was made by the RBI governor Sanjay Malhotra on conclusion of three-day marathon meeting of monetary policy committee here today. By doing so, the apex bank changed its stance changed to accommodative.
Global volatility & huge uncertainty, due to unilateral final imposition of trade tariffs by the US, has led to wild movements on rates globally. For instance the US 10 yr Treasury yield has gone up by 25bps overnight.
Tariffs, if continued for long, should be inflationary on the immediate basis while it’d slow demand in the medium term.
Suresh Darak, Founder, Bondbazaar says, “RBI seems to be trying to move past the tariff noise and addressing the demand slowdown concern with the repo rate cut of 25bps and change of stance to accommodative.”
Interesting times are up ahead over the next 1-2 months, and the US govt actions will significantly impact rates globally including India.
