India Interest Rate Cut Hopes Dim as Trump Talks High Tariffs

US President Donald Trump’s surprise tariff announcement is set to weigh on the Reserve Bank of India’s monetary policy decision next week even as a final word on the trade deal is awaited.

While most economists were not expecting a back-to-back cut in interest rates after June’s unexpectedly large 50-basis-point reduction, Governor Sanjay Malhotra’s recent comments had revived hopes of lower rates in the August 6 policy review. More so, as inflation fell to its lowest level in more than six years in June.