RBI delivers the price reduction in a row with kicking the American tariff

The Indian Central Bank reduced its policy rate by 25 basis points to 6 %.

The price reduction was in line with the expectations from the analysts included in Reuters, and came at a time when the mutual tariff in the United States began in the middle of the night (9.31 am of India time) with a 26 % tax imposed on the goods coming from India.

The transition from RBI comes amid softening inflation, but also a slowdown economy.

GDP in India expands with a weaker 6.2 % expected In the fourth quarter From 2024, the country’s economy It is estimated that 6.5 % grow In the fiscal year until March 2025 – a sharp slowdown of 9.2 % in the previous year.

I expected a note from HSBC on April 7 that the declared definitions will fly directly 0.5 percentage of the full growth of India for the financial year ending in March 2026, adding that there may be indirect effects of factors from factors that include the slowdown and weakest foreign direct investment flows.

Sanjay Macher, chief economist in Southeast Asia and India in ANZ, told CNBC on April 3 that there is certainly “negative risks” to the growth of GDP of India, saying that the gross domestic product growth number “is less than 6 % is not impossible at this stage, given the shocks of the global order.”

Mathur also indicated that there is also a thermal wave in India, which would disturb the country’s agricultural output. Agriculture is a major part of the country’s gross domestic product, as it constitutes 18 % of its economy.

Inflation recently came at a temperature lower than expected 3.61 % in February where vegetable prices were cooled, and it was at its lowest level since July 2024. HSBC estimated that inflation would reach an average of about 3.5 % over the next six months, leading food prices.

HSBC added: “The basic inflation is likely to remain soft, led by the recent estimate of rupees, imported inflation from China, the most soft oil prices, and weaker local growth.”

– This is urgent news. Please check again for updates.