INFLATION, GROWTH TO DECIDE FUTURE CUTS, SAYS RBI GUV

The future rate decisions of the central bank’s Monetary Policy Committee could go either way, depending on the inflation outlook and economic growth, said governor Sanjay Malhotra, citing the regulator's “neutral” policy stance.

- Abirami Sekar

Lower inflation and a slowdown in growth can both be equally important catalysts for potential rate cuts, the Reserve Bank of India governor said in an interview with CNBC TVI8 on Tuesday. RBI cut the benchmark repo rate by 25 basis points each in February and April, followed by a50-bps cut in June, leading toa 100 basis point (or 1 percentage point) drop in rates within five months. Banks borro