RBI Cuts Rate by 25bps, Turns 'Accommodative'
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Apr 10, 2025 | Page No.: 1 | Position: Top Left | Source: Bureau | Sq Cm: 339 | AVE: 279996 | PR Value: 1399980
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CHEER FOR RETAIL BORROWERS RBI Cuts Rate by 25 s Ps Turns Accommodative with market expectations paving Snips fiscal s growth the way for lenders to immediate- ly reduce end-user borrowing outlook citing events costs for home and car purchases retail loans typically pegged to snowballing around the external benchmark Simultaneously RBI lowered US tariffs as a worry this fiscal year s growth and infla- tion projections by 20 basis points to 6 5° o and 4° o respectively ci- Our Bureau ting the tariffs that were suppo- sed to come in- Mumbai The Reserve Bank of to effect from India RBI on Wednesday lowe- Wednesday on red policy rates by a quarter per- Indian exports centage point for the second time to the US in as many months and surprised NEW POLICY One basis po- the markets with a stance switch RATE SET BY int is a hund- to accommodative from neut- CENTRAL BANK redth of a per- HOW MUCH MORE CAN RBI LOWER RATES ral to signal an easing bias centage point It also marginally reduced the The downward revision in I am Sanjay but I am not Sanjay of Mahabharat to be FY26 economic expansion fore- growth essentially reflects the able to foresee that far I do not have that divine vision cast on concerns that tariffs-trig- impact of global trade and policy But we will jointly try to manage growth and inflation gered global challenges could ha- uncertainties said Sanjay Mal- RBI governor ve a disproportionately adverse hotra governor of RBI announ- impact on growth than on prices cing the second successive rate cut The central bank s rate-setting after taking charge last December committee unanimously voted to lower the policy rate to 6 in line Downward Direction of Rates p 8 Downward Direction of Rates ?? From Page 1 Malhotra said inflation is gi- ving comfort and confidence but growth is lower than what we aspire for adding that ta- riffs dampen growth Hinting that tariffs will im- pact growth more than infla- tion the governor said While global trade and policy uncerta- the Sanjay of the Mahabharata inties shall impede growth its to be able to foresee that far the impact on domestic inflation re- governor said I do not have quiring us to be vigilant is not that divine vision but we will jo- expected to be of major con- intly try to manage the growth cern and inflation RBI said the change in its stan- Responding to the policy mea- ce implies the direction of policy sures the 10-year bond yields rates is downward although closed at 6 49 against 6 47 Malhotra declined to predict a the previous day while the rupee floor in the current cycle of ea- closed at a three-week low at sing that began in February 86 68 per dollar versus 86 23 the previous day TOO FAR OUT The BSE Sensex lost 379 points Where it will reach we do not or half a percentage point to end know I am Sanjay but I am not at 73 847