The Central bank reduced its growth forecast, which was earlier 6.7 per cent, to 6.5 per cent. The RBI chief said some of the global uncertainties have already been factored into the revised growth forecast.

New Delhi:The Reserve Bank of India (RBI) on Wednesday kept its policy interest rate unchanged, as policymakers weighed the risks posed by changing global trade policies and the uncertainties surrounding the potential for higher tariffs by the US President Donald Trump's administration.

The  United States has imposed a 25 per cent duty on all Indian goods entering the US starting Thursday, and has threatened to substantially hike the tariff for New Delhi's continued purchase of Russian oil.

Considering global trade uncertainty, the six-member rate-setting panel, headed by RBI Governor Sanjay Malhotra, held the repurchase rate at 5.5 per cent in a unanimous vote and decided to continue with a 'neutral' stance.

Malhotra did not directly speak about US tariff actions, but said but he indicated that it is difficult to predict their impact on India's growth."Prospects of external demand remain uncertain amidst ongoing tariff announcements and trade negotiations. 

Source:Ndtv