RBI's Strategic Stance: Balancing Inflation and Growth
The Reserve Bank of India is adopting a 'wait and watch' approach before deciding on further rate cuts. Governor Sanjay Malhotra emphasized the equal importance of growth and price stability, with a focus on internal assessments of inflation and the impact on future policy rate decisions.
- Country:
- India
The Reserve Bank of India (RBI) is exercising caution before moving forward with further rate cuts, as Governor Sanjay Malhotra highlights the importance of maintaining both growth and price stability.
With inflation on the decline, the RBI's Monetary Policy Committee (MPC) has been decreasing the benchmark repo rate, with a total reduction of 100 basis points since February. The MPC has adopted a neutral stance, allowing flexibility for future rate adjustments.
Governor Malhotra, in an interview with CNBC-TV18, explained that internal inflation assessments are underway, with projections to be announced soon. The upcoming MPC meeting will consider these assessments alongside the evolving economic situation to decide on the necessary policy rate adjustments.
(With inputs from agencies.)
Google News