What Will Be The Impact Of Trump Tariffs On Growth & Inflation? Revealed By Top RBI Officials

The interest rate decision by the RBI Monetary Policy Committee was being watched closely given the challenges expected from Trump tariffs. However, the 6-member committee voted unanimously to hold the rates at 6.5%. RBI Governor Sanjay Malhotra explains the rationale behind the decision and how the current data was insufficient to deepen the 100 bps rate cut already implemented in the past 7 months. The Governor emphasised that the central bank was “keeping a vigil on incoming data” and would act accordingly. RBI has also been at pains to highlight that India’s economic growth and inflation are not much dependent on external factors and the impact on India will be “very limited.”