Mumbai, April 9 — The Reserve Bank of India on Wednesday slashed the repo rate by 25 basis points to 6 per cent, marking its second consecutive rate cut in a bid to cushion the economy from global headwinds and retaliatory tariffs imposed by the United States.
RBI Governor Sanjay Malhotra said the Monetary Policy Committee voted unanimously for the cut, which follows a similar reduction in February that brought the rate to 6.25 per cent. The latest move brings relief to loan borrowers across sectors.
Citing global uncertainties, the central bank revised its GDP growth projection for 2025 downward from 6.7 per cent to 6.5 per cent.
The rate cut comes days after US President Donald Trump imposed steep 26 per cent reciprocal tariffs on Indian goods, effective April 9, triggering concerns over export competitiveness and domestic demand.
