The rate cut was in line with expectations, and comes as the U.S.' reciprocal tariffs kicked in, with a 26% levy slapped on goods coming in from India.

India's Monetary Policy Committee (MPC), which consists of three RBI and three external members, cut the repo rate by 25 basis points to 6.00% as expected. It started reducing rates with a quarter-point reduction in February, its first cut since May 2020.

India's central bank has cut interest rates by 0.25% amid a spate of downgrades to growth following Donald Trump's tariff announcements.The Reserve Bank of India (RBI) reduced repo rates from 6.25% to 6%,