Measures are balanced, calibrated & thoughtfully considered: Guv

RESERVE BANK OF India governor Sanjay Malhotra spoke on a host of issues at the post-policy press conference on Wednesday. Excerpts:

- MAHESH NAYAK

With inflation easing and the word “limited” dropped from the policy statement, is there now room for more than one rate cut? What triggers are you waiting for?

Inflation has declined by 1% since June, now standing at 2.6%, which does open up space to support growth. However, growth projections have been slightly revised downward due to trade-related factors like the 50% tariff, partially offset by GST. While monetary policy transmission has been broad-based, it’s still unfolding alongside other government measures. Given ongoing uncertainties and evolving developments, the MPC felt it was prudent to pause. The change in language reflects the shifting growth-inflation dynamics, not an immediate signal for rate cuts.

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