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Apt time to cut repo rate as inflation aligns with the target: RBI governor
The Morning Standard
|February 22, 2025
RESERVE BANK Governor Sanjay Malhotra on Friday said given the macroeconomic outlook when inflation is expected to align with the target, and recognising that monetary policy is forward-looking, a lower policy rate was more appropriate at the current juncture.
"Need to preserve high growth momentum, price stability as food inflation outlook is turning positive," Malhotra said in the MPC minutes. The six-member monetary policy committee (MPC) of the RBI considered the worries over growth and an easing inflation trajectory as the best bet to begin a baby step towards an easier money regime by cutting the repo rate by 25 bps to 6.25% at the February 7 policy review, showed the minutes of the meeting released on Friday.
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