RBI Cuts Repo Rate To 6%, Turns Accommodative – Top Economists Decode Impact Amid Tariff Headwinds

In its first monetary policy of FY26, the Reserve Bank of India (RBI) has cut the repo rate by 25 basis points to 6%, shifting its stance from ‘neutral’ to ‘accommodative’. RBI Governor Sanjay Malhotra announced that the decision was taken unanimously by the Monetary Policy Committee (MPC), aiming to cushion the Indian economy against rising global uncertainties, including US President Donald Trump's tariff announcements. The change in policy stance is expected to bring down lending rates, including home loan EMIs, and support economic growth amid external headwinds. Malhotra noted that the global economic environment remains volatile, with falling crude oil prices, a weaker US dollar, and heightened trade frictions impacting investor sentiment. The central bank revised its FY26 GDP growth forecast downward to 6.5% from 6.7%, while also lowering the inflation projection to 4% from 4.2%, citing easing food prices and lower crude oil rates. However, risks remain. The RBI raised its Q4FY26 inflation forecast to 4.4% to account for potential imported inflation due to global trade tensions. Malhotra emphasized vigilance and proactive engagement with global partners, especially the US. The policy signals a balancing act — supporting growth while managing inflation — in an increasingly uncertain global economic landscape.Watch Rumki Majumdar, Economist, Deloitte, decodes the implications of RBI’s rate cut and what lies ahead for India’s economy in FY26. In conversation with Siddharth Zarabi, Editor, Business Today- Indranil Pan, Chief Economist, YES Bank; Madhavi Arora, Chief Economist, Emkay Global and Siddhartha Sanyal, Chief Economist, Bandhan Bank decode the implications of RBI’s rate cut and what lies ahead for India’s economy.