RBI's Policy Move: Governor Malhotra Calls for Stakeholder Action
RBI Governor Sanjay Malhotra emphasizes that following a significant repo rate cut, the central bank has little room left for monetary intervention, thereby urging relevant stakeholders to support economic growth. Malhotra remains focused on his role, despite past tensions with the finance ministry over policy decisions.
- Country:
- India
The Reserve Bank of India (RBI) Governor, Sanjay Malhotra, has stated that the central bank has exhausted its capacity to further monetary measures to stimulate growth, following a 50 basis point cut in the repo rate.
Malhotra emphasized the importance of other stakeholders stepping up to sustain economic development. He reiterated his commitment to his responsibilities, avoiding prescribing actions for others despite historical disagreements between the RBI and the finance ministry.
With a recent shift in the monetary policy stance from 'accommodative' to 'neutral,' Malhotra highlighted the finite scope left for the RBI to bolster economic growth, particularly after reducing the policy repo rate by 100 basis points since early 2025.
(With inputs from agencies.)
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