After 125 bps cut, all eyes on rupee mgmt from RBI

The Reserve Bank cut its key rates at four of the six monetary policy reviews of 2025 by a cumulative 1.25 per cent, courtesy inflation touching record lows, in what the newly appointed Governor Sanjay Malhotra called as a “rare Goldilocks period” for the economy.

- PRESS TRUST OF INDIA

Malhotra cut the key rates right from his first policy announcement in February to support growth, and also slashed key rates by 0.50 per cent in June as it saw the space created by lower inflation.

Completing a year in office, the career bureaucrat-turned-central banker termed it as a "rare goldilocks period” for India, with growth exceeding 8 per cent despite headwinds like the US tariffs and geopolitical changes, and inflation under 1 per cent.

He also made it clear that growth will soften going ahead, and inflation will inch up closer to the RBI's target of 4 per cent.

Amid concerns on the nominal GDP growth remaining low, Malhotra said the Reserve Bank of India's (RBI's) actions are dictated by the real GDP arrived at after subtracting the inflation levels.