India central bank cuts rates amid US trade deal limbo
Summary
India's central bank cut interest rates to 5.25 percent to cushion the economy amid US tariffs and easing inflation, while maintaining a neutral policy stance.
Key Points
- India's central bank cut its benchmark repo rate by five basis points to 5.25 percent.
- The rate cut was motivated by low inflation and risks from US tariff measures.
- India faces steep 50% tariffs on many goods, impacting exports and jobs.
- RBI Governor Sanjay Malhotra indicated room for further rate cuts with a neutral stance maintained.
