Reserve Bank of India Maintains Policy Rates Amid U.S. Trade Deal Developments
The Reserve Bank of India (RBI) has decided to keep its key policy rates unchanged at 5.25%, following the announcement of trade deals with the U.S. and the European Union. This decision comes after a series of rate cuts totaling 125 basis points last year. The RBI's move is influenced by the easing of growth headwinds due to these trade agreements. The U.S. had previously imposed 50% tariffs on Indian exports, which have now been reduced to 18%, alleviating some of the external pressures on India's economy. The RBI's focus will now shift to the transmission of previous rate cuts, as the yields on long-term bonds are expected to remain stable. India's economy is projected to grow by 7.4% in the fiscal year ending March 2026, maintaining its status as the world's fastest-growing large economy. 
