RBI Rate Cut: RBI Governor Sanjay Malhotra (Sanjay Malhotra) made a big indication about cutting interest rates in future, a day after a cut of 25 basis points in the repo rate by MPC. Addressing the media with Finance Minister Nirmala Sitharaman after the RBI board meeting, Governor Malhotra said that the RBI has always focused on providing ease of loans and there is scope for improvement. He further said that RBI will take further steps to provide loans easily.
The RBI’s Monetary Policy Committee decided to cut 25 basis points (0.25 per cent) yesterday after keeping the rates stable 11 consecutive times. After this deduction, the repo rate now reduced from the earlier 6.5 per cent to 6.25 per cent. This step has been taken in view of recession in the Indian economy. According to advance estimates, the growth rate of the current financial year is estimated at 6.4 percent. The RBI Governor accepted lethargy in the economy and hoped that the interest rate cuts will boost consumption and increase growth.
Finance Minister Nirmala Sitharaman has also said that monetary and fiscal policies are moving forward on the development and inflation front and will benefit the economy.
For the common man, double gains will help in improving the senses of the economy as tax deduction in budget and reduction in repo rate. The Finance Minister has announced in the budget on February 1 that there will be no tax on income up to Rs 12 lakh annually. In a way, the government has given a relief package of Rs 1 lakh crore to the economy as a very important relief measure.
RBI Governor Malhotra also talked about the falling level of rupee. He said that RBI does not target a particular level or band and he only intervenes to prevent heavy volatility. He said that the pressure on the rupee is mainly due to Trump’s tariff announcements. Further improvement can be seen in it.
The RBI governor said, “The main reason for the fall in the rupee is tariff announcements and global uncertainty related to Trump. So it is expected that the situation will be cured and will help prevent the rupee decline.”
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In response to a question at the press conference after the policy meeting on 7 February, the Governor said that the current level of rupee has been taken into consideration while estimating inflation.
The RBI has estimated the GDP growth rate to be 6.7 per cent in the next financial year, which is at the upper end of the growth estimate of 6.3-6.8 per cent of the Economic Survey. Retail inflation for the current financial year has been estimated at 4.8 per cent. Whereas for FY 2026, it has been reduced to 4.2 percent.