RBI's Sanjay Malhotra: A Different Sanjay Predicts India's Economic Path

RBI Governor Sanjay Malhotra, likened to Sanjay of Mahabharat, talks about the ongoing rate actions amid global uncertainties. He emphasizes a joint effort with the government on fiscal and monetary policies to manage growth and inflation. Malhotra announced another repo rate cut, signaling further easing ahead.

RBI Governor Sanjay Malhotra, nodding to the legendary Sanjay of Mahabharat, highlighted the complexity of predicting future rate actions amid global economic uncertainties. Speaking at a media briefing, he stressed the collaborative efforts of monetary and fiscal policies to manage India's growth and inflation dynamics.

Despite the challenges, Malhotra announced a second consecutive interest rate cut, pointing towards a policy direction that suggests further easing ahead. This decision comes in response to mounting pressure on the economy, exacerbated by persistent US tariffs.

Emphasizing readiness, Malhotra assured the public of sufficient liquidity from the RBI to ensure swift rate cut transmission. The key policy rate now stands at 6 per cent, marking the lowest borrowing costs since November 2022 due to reduced inflation and falling oil prices.

(With inputs from agencies.)