Mumbai, Sept. 1 -- The surprise 7.8% economic growth in the first three months of 2025-26 is unlikely to deter India's monetary policy panel from cutting interest rates further in October, according to experts.

Monetary policy tends to be forward-looking, and since the first-quarter economic growth estimates do not fully account for the tariff shock, the Reserve Bank of India's (RBI's) monetary policy committee (MPC) is still expected to lower the repo rate in the next meeting scheduled for 29 September to 1 October, they said.

On 27 August, the President Donald Trump-led US administration imposed an additional 25% tariff on Indian goods for buying Russian oil, taking the total levy to 50%. Other than India, only Brazil faces 50% tariff...