'Aim is to ensure proper transmission'

IN THE POST-MONETARY policy media interaction, RBI governor and deputy governors covered wide-ranging issues related to the monetary policy, including impact of reciprocal tariffs, shift in stance, inflation and growth trajectory.

- SACHIN KUMAR

Below is the excerpts of the interaction:

What is your assessment impact of tariffs on India?

Malhotra: Most of the forecasts for the global GDP growth rate have now come down by at least 20-30 basis points (bps). Not only for this year, but even for the next year. Similarly, on inflation, there is a mixed response globally. For India, we have given our assessment. We have reduced the growth rate by 20 basis points this year, primarily because of uncertainties. On the inflation front, we have said it can move both ways because of the demand that is going to shrink as a result of the trade tariff friction. You are seeing that crude prices have also gone down. All in all, more than inflation, we are concerned about its impact on growth.

RBI is revising liquidity framework. Can you shed light on what are the considerations for the revised liquidity framework?