Overview

• The RBI's Monetary Policy Committee, led by Governor Sanjay Malhotra, concludes its first meeting of FY26 today, with a decision on a 25 basis point repo rate cut expected at 10 a.m.
• This would lower the repo rate to 6%, marking the second consecutive rate cut following February's reduction from 6.50% to 6.25%.
• The move is anticipated to counter economic strain caused by a 26% US tariff on Indian imports, which could reduce GDP growth by up to 40 basis points.
• Experts suggest the rate cut could ease funding constraints for NBFCs and small businesses, providing critical support for economic momentum.
• Falling oil prices and easing inflation are additional factors bolstering expectations of an accommodative policy stance, with potential for further rate cuts.