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Trump's Tariff to Test India's Central Bank: Decision Guide

Trump's Tariff to Test India's Central Bank: Decision Guide

Bloomberg05-08-2025
US President Donald Trump's tariff shock on India is complicating the central bank's interest rate decision Wednesday, with some economists bringing forward their expectations for easing.
Before Trump's announcement, most economists had expected no change in rates following the governor's cautious stance in the June policy meeting. Now, some of them — including Soumya Kanti Ghosh of State Bank of India Ltd. and Dhiraj Nim of Australia & New Zealand Banking Group — are forecasting a quarter-point rate cut to shield Asia's third-largest economy from tariff-related uncertainty.
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