Trump’s tariffs exacerbate uncertainties! Why RBI cut repo rate by 25 basis points to support GDP growth

The RBI’s Monetary Policy Committee has reduced the repo rate by 25 basis points to 6%, shifting its stance to accommodative amid global economic uncertainties. While the GDP growth forecast for FY 2025-26 has been slightly lowered to 6.5%, the CPI inflation outlook remains benign at 4%.