New Delhi, March 20 -- The US Federal Reserve's decision to keep its policy rate unchanged in the 4.25%-4.50% range, along with its guidance for two rate cuts in 2025, has triggered fresh discussions on how central banks across the globe, including the Reserve Bank of India (RBI), will respond.

The RBI had initiated the repo rate-cut cycle in February. The repo rate was cut by 25 basis points (bps) to 6.25% from 6.5% on February 7, 2025.

US Fed Chair Jerome Powell's comments on the impact of tariffs from the Trump administration on inflation and economic growth further add to the complexity of global monetary policy outlooks. With economic growth in the US projected at 1.7% and inflation at 2.7% in 2025, the Fed has also signaled a slow...