Interest Rate Cuts to Boost Economic Growth: Malhotra
Amid ongoing global economic uncertainty, interest rate cuts are expected to support India’s economic growth, said RBI Governor Sanjay Malhotra during the latest Monetary Policy Committee (MPC) meeting.
On June 6, the six-member panel headed by the RBI Governor voted for a 50 basis points cut in the repo rate. Malhotra emphasized that such measures would bring a sense of certainty during uncertain times.
The RBI Governor noted that a neutral monetary stance provides the central bank with the flexibility to adjust interest rates as per evolving domestic and global economic conditions.
Key Highlights from MPC Meeting
- A 50 basis points cut was implemented on June 6, 2025.
- Total cut over the last five months: 100 basis points.
- Monetary stance changed from accommodative to neutral.
- Five members voted for a 50 bps cut, while one member suggested 25 bps.
Malhotra stated, "This package of measures is expected to provide some certainty during uncertain times and support growth." The MPC meeting minutes were released on June 20.