U.S. Fed Hesitates, RBI Slashes Rates! India Bets Big On Growth Amid Global Uncertainty

U.S. Fed Hesitates, RBI Slashes Rates! India Bets Big On Growth Amid Global Uncertainty

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Manvendra Singh Rajvanshi
  • Updated Jun 6, 2025 5:10 PM IST

As the U.S. Federal Reserve grapples with Trump’s tariff shocks and inflation fears, India’s central bank — the Reserve Bank of India (RBI) — is going full throttle on growth. In a bold move, the RBI slashed repo rates by 50 basis points and announced a dramatic cut in the cash reserve ratio, injecting ₹2.5 lakh crore into the system. While the Fed treads cautiously despite pressure from the White House, the RBI is putting money where its mouth is. From home loan EMI relief to stock market surge —and the hit on FD returns — this report breaks down the ripple effects of this major monetary policy pivot.

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