Heightening global tensions, rising geoeconomic fragmentation makes for compelling case for a rate cut

President Trump's trade policies, including reciprocal tariffs, have sparked global economic concerns, potentially leading to a lose-lose scenario with higher costs and fragile trade relations. While some sectors in India may benefit from these shifts, overall GDP growth could be negatively impacted. Amidst softening inflation, a potential repo rate cut by the RBI is anticipated to boost economic growth.