On Wednesday, the Reserve Bank of India (RBI) lowered the benchmark interest rate by 25 basis points. This rate drop is the second in a row. Supporting the economy, which has been impacted by retaliatory tariffs from the US, is the goal.

6% is currently the main policy rate as a result of this decrease. This provides assistance to business, vehicle, and home loan customers.

The RBI also lowered the repo rate by 25 basis points to 6.25% at its policy meeting in February. This came after a rate reduction in May 2020.

February 2023 saw the most recent rate increase. The RBI raised the policy rate to 6.5% at that time, a 25 basis point rise.

The Monetary Policy Committee (MPC) unanimously approved this rate drop, RBI Governor Sanjay Malhotra said. The current policy rate is 6.25%.

The RBI also updated its prediction for the year’s GDP growth. The 6.7% projection has been reduced to 6.5%. Global uncertainties are the reason for this change.

The growth prediction has changed in response to the statement made by US President Donald Trump. Beginning on April 9, he levied a reciprocal duty of 26% on imports from India.