Markets Crash 7%. Will RBI Cut Rates As Trump Turns Up The Heat?

Indian stock markets have lost over 7% in just 8 trading sessions, rattled by Trump’s surprise tariffs and rising global uncertainty. Now, all eyes are on the Reserve Bank of India, where a crucial 3-day Monetary Policy Committee (MPC) meeting is underway. Economists expect a 25 bps repo rate cut, potentially bringing it down to 6% — the second consecutive cut under new RBI Governor Sanjay Malhotra. Such a move could ease investor anxiety, bring down borrowing costs for businesses, and offer relief on EMIs for consumers. Meanwhile, the pressure isn’t limited to India. In the U.S., Donald Trump is calling for a Federal Reserve rate cut, accusing Chairman Jerome Powell of “playing politics.” Powell, however, is pushing back — saying it’s too soon to decide on any policy shift, especially amid the tariff-induced uncertainty.