BofA: US Tariffs on India Are Unlikely to Prompt RBI Rate Cut, RBI to Take a Prudent Approach This Week
Glon August 4 | BofA economists released a report stating that the 25% tariffs imposed by the US on India are unlikely to prompt a rate cut from the Reserve Bank of India (RBI). The tariff rates a
Glon August 4 | BofA economists released a report stating that the 25% tariffs imposed by the US on India are unlikely to prompt a rate cut from the Reserve Bank of India (RBI). The tariff rates and punitive threats may put India at a disadvantage. India's tariff rates are higher than those of regional peers, slightly lower than the 26% announced in April. As trade negotiations between the two countries continue, India may accept the US's lower tariffs. They added: "As these talks progress, we believe the RBI monetary policy committee should adopt a cautious stance and wait and see, without overestimating the impact of these tariffs on growth." BofA predicts that the RBI will take a prudent approach this week.
