THE RBI FEB'25 MONETARY POLICY: WILL THE RATE SOFTEN?
- Credit Rating Agency in India
- RBI Monetary Policy
- THE RBI FEB'25 MONETARY POLICY: WILL THE RATE SOFTEN?
The beginning of the month February, in the new year 2025 remains full in fascinating events. Just after the announcement of the Union Budget 2025, the RBI monetary policy is awaited on 7 Feb’25, with market expectation of a 25-bps rate cut amid heightened borrowing costs and subdued growth. The shifted policy focus towards the middle-class consumers in the Union Budget’25 and the recent RBI liquidity measures have ignited the expectations for a further boost for the economy by softening the policy rate.
Nonetheless, the global scenario remains somewhat hostile as on 3 Feb 2025, global markets reacted negatively after Trump's tariff threats, with Asian stocks falling sharply. Initially, Trump threatened to impose a 25% tariff on imports from Canada and Mexico and an additional 10% tariff on Chinese imports.