New Delhi, April 10 -- It may just be a coincidence that the Reserve Bank of India (RBI) announced the rate-cut decision of its Monetary Policy Committee (MPC) on 9 April, the day that the US imposed 'reciprocal tariffs': i.e., additional ad-valorem import duties at higher-than-baseline rates aimed at a group of targeted countries, including India.

Yet, this global backdrop loomed large over RBI's policy call as India's central bank rightly persisted with 'more of the same.' It continued to lean towards nurturing growth. It cut the repo rate again by 25 basis points to 6%, having delivered its first rate cut since May 2020 in its last policy review two months earlier. In the period since, it has also continued to pour liquidity into the ...