Relief can be given to people paying EMI from RBI. Taking policy decisions from RBI in the monetary review meeting from April 7 to 9, the interest rate can be cut by up to 0.25 percent. At present, the central bank has scope to cut interest rate due to reduction in inflation.

However, the tariff imposed by the US has definitely created a challenge in front of maintaining the pace of the economy. In this situation, encouragement is needed to maintain an economy speed on the domestic front.

Relief expected

Earlier, in February 2025, RBI had cut the repo rate by 0.25 per cent. The repo rate was reduced from 6.5 percent to 6.25 percent. This happened for the first time after about 5 years. In such a situation, it is now expected that this time also the RBI can cut 0.25 percent further. Taking a loan can be cheaper.

If you explain in easy language, you can get some relief in EMI. According to the report of Financial Express, institutions like Bank of Baroda say that a total reduction of 0.75 percent can be seen in the whole year.

If you understand in easy language, the repo rate is the rate on which RBI gives loan to banks. When this rate decreases, banks also start giving loans to people at cheap rates, which reduces EMI and increases the expenditure in the market.

RBI’s target of inflation control is between 2 percent to 6 percent and India remains in this band. This means that now RBI’s focus will be on boosting growth. This can be news of small business, startups and the general public.

Tariff raised challenge

US President Donald Trump has announced a heavy tariff on 60 countries, including India and China. These tariffs will be from 11 percent to 49 percent and will be implemented from April 9. At the same time, RBI will announce its policy on the same day. Now it can become a chance for India. If countries like China, Vietnam, Bangladesh become expensive in the American market, then there can be a place for Indian exporters. That is, our exporters can get a new Window of Opportunity.

Actually, in such a situation, the question is how RBI will balance. That is, the needs of domestic development on one side, the changing atmosphere of global trade on the other side. Now in such a situation, the question is big whether the rate will be cut again?

Also read: Stock Market Crash: Sensex declines drastically, 19 lakh crore Swaha, Reliance-TCS shared

Monday was very disappointing for the Indian stock market once again. Within five minutes, investors suffered a huge loss of about 19 lakh crore rupees. The Nifty slipped down about 1000 points. This was the biggest decline in the last 10 months in the Nifty. Shares from Reliance to TCS were seen rolling. In such a situation, the question is arising that after the announcement of the tariff, why is there such chaos in the stock market from America to China, South Korea to India? Let us know in detail in five points.

1-Economic crisis fear

Ever since the tariff has been announced by the Trump administration and more than 180 countries around the world have been brought under its purview, since then there is a possibility of increasing inflation, decrease in profits of companies and weak sentiments of the consumer. If the experts are to be believed, it can not only have a widespread impact on the global economic pace, but if this policy remains for a long time, then the global recession is sure to come. If the global recession comes, then India will also not be untouched by that effect, even if its effect is less.

Results of 2-RBI MPC meeting

The monetary policy of the Reserve Bank is being held from April 7 to 9, results will come on 9th. However, it is expected that this time there may be a cut of 25 basis points from RBI. If this happens, there will be a positive sign for the market. Along with this, the figures of retail inflation and industrial production will be released on 11 April. This will also help in understanding the state of the Indian economy to a large extent.

3-hurry storm

US President Donald Trump, after the announcement of the tariff, reacted to the fall in the stock markets continuously, saying that sometimes bitter medicine has to be given to cure something. President Trump also made it clear that there is no concern in this. Whereas, on the other hand, the Asian stock markets have seen a drastic decline on Monday, where there was a decline of 225 points as soon as the market was opened in Nikkei, Japan.

Whereas, Australia’s S&P 200 declined by 6.5 percent at seven 7184.70, South Korea’s Koppy fell by 5.5 percent to 2328.52. Earlier, the market closed on Friday in the US Nasdaq at a decline of nearly 7 per cent. However, experts believe that this decline is nothing, if the situation does not recover, then the condition of the American market can be like this in 1987.

Also read: Stock Market Crash: Sensex declines drastically, 19 lakh crore Swaha, Reliance-TCS shared