‘I’m Not Sanjay from Mahabharat’: RBI Governor on Future Rate Cuts

RBI Governor Sanjay Malhotra used mythological wit to address questions on the central bank’s policy direction, saying, “I’m Sanjay, but not the Sanjay of Mahabharat to foresee the future,” when asked about the scope of upcoming rate cuts.

RBI Governor Sanjay Malhotra

The Reserve Bank of India cut the repo rate by 25 basis points to 6%, the second reduction this year. The central bank also shifted to an accommodative stance, signalling openness to further cuts if necessary.

Malhotra emphasized the collaborative approach between fiscal and monetary policy. “The government has done its bit. We’ve responded with our own. Where this takes us, we’ll see,” he said.

Despite the supportive stance, the RBI revised India’s FY26 GDP forecast downward from 6.7% to 6.5%, citing risks from rising global trade tensions, especially due to fresh tariffs from the US under President Trump.

Inflation showed a silver lining—retail inflation dropped to 3.61% in February, below the RBI’s 4% target, largely due to easing food prices. However, Malhotra warned that global uncertainty and weather-related supply issues could still pose risks.