India's central bank cuts key interest rate again

New Delhi: India's central bank has cut its key interest rate for the second consecutive time.

According to Indian media, the rate cut comes at a time when the retaliatory tariffs imposed by US President Donald Trump have come into effect.

The six-member Monetary Policy Committee of the Reserve Bank of India unanimously cut the repo rate by 25 basis points to 6 percent.

In a televised address from Mumbai on Wednesday, Central Bank Governor Sanjay Malhotra said that the year has started with anxiety for the global economy. The Indian economy has made continuous 'progress' but we are cautious.

According to Indian media reports, the Indian economy grew at a rate of 6.5 percent in the last financial year, which is the weakest level after the coronavirus epidemic, and experts estimate that the growth rate may decrease by 20 to 40 basis points this year due to tariffs.

Since taking office in December, Malhotra has adopted a more progressive policy than his predecessor, cutting interest rates for the first time in five years at his first policy meeting in February and injecting more than $80 billion into the banking system in the past two months.

According to Bloomberg, India's inflation rate remained below target last month and falling oil prices have also justified the Reserve Bank of India to maintain an accommodative policy.