The Reserve Bank of India (RBI) lowered its key repo rate on Wednesday for a second consecutive time and changed its monetary policy stance signalling room for more cuts ahead, as it seeks to boost the sluggish economy in the face of fresh U.

The rate cut was in line with expectations, and comes as the U.S.' reciprocal tariffs kicked in, with a 26% levy slapped on goods coming in from India.

India’s central bank Governor Sanjay Malhotra said US tariffs will hit the economy’s growth, the first official indication of the negative consequences of the trade action.