2 reasons why RBI has cut
Today, on April 9 2025, the Reserve Bank of India or RBI reduced
its key policy repo rate by 25 basis points to 6.00%. The central bank also
adopted an accommodative stance for the first time since the pandemic. The main purpose of this rate cut is to give a boost to the economic growth of the country as the global challenges including tariffs mount.
In the first bi-monthly RBI monetary policy of the fiscal year, RBI Governor Sanjay Malhotra seemed sure of the steady progress that the Indian economy has made, despite the presence of global headwinds.
RBI repo rate cut also brings relief to loan borrowers as the EMIs of home and auto loans could soon drop, if banks decide to pass on the benefits to the consumers.
However, stock market and rate sensitive stocks gave mixed reactions to the RBI rate cut announcement.
In this video, Upstox explains the reasons why RBI resorted to a second consecutive rate cut after a long hiatus and how RBI rate cut impacts the stock market and common man and the economy.
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