On April 9, 2025, the Reserve Bank of India (RBI) reduced its key repo rate by 25 basis points to 6.00%, marking the second consecutive rate cut this year. The Monetary Policy Committee (MPC) also shifted its policy stance from “neutral” to “accommodative,” indicating the possibility of further rate cuts to support the slowing economy, which has been impacted by recent U.S. tariffs. The RBI lowered its growth forecast for the fiscal year from 6.7% to 6.5% and reduced its inflation outlook from 4.2% to 4%. All six MPC members supported the rate cut.
