He added: “Amidst this turbulence, the US dollar has weakened appreciably; bond yields have softened significantly; equity markets are correcting; and crude oil prices have fallen to their lowest in over three years.”
The announcement comes amid growing fears of a global economic slowdown, with US protectionist measures casting a shadow over emerging markets, including India.
In its last policy review in February, the RBI lowered the benchmark repo rate by 25 basis points to 6.25%, its first rate cut in nearly five years.
Here’s more on the RBI monetary policy committee:
-In a major step that will ease loan EMIs, the RBI has slashed the repo rate by 25 basis points from 6.25% to 6.%, for the second time in a row, to support a shuttering economy hit by reciprocal tariffs imposed by the US.
-The RBI has also lowered the GDP growth forecast to 6.5% from an earlier projection of 6.7% due to global uncertainties.
-The quarter-wise GPD growth projection stands at: Q1 at 3.6%; Q2 at 3.9%; Q3 at 3.8%; Q4 at 4.4%.
-CPI inflation for the financial year 2025-26 is projected at 4%, with Q1 at 3.6%; Q2 at 3.9%; Q3 at 3.8%; and Q4 at 4.4%.
-The RBI said food inflation dropped to a 21-month low of 3.8% in February due to a strong seasonal correction in vegetable prices this year.
