RBI's Bold Rate Cut Signals Support Amid Global Tensions

RBI Governor Sanjay Malhotra announced a 50 bps reduction in the benchmark short-term lending rate, totaling a 100 bps cut in quick succession. This front-loaded approach aims to support growth amid global uncertainties and provides monetary policy flexibility. The decision was backed by most MPC members.

In a decisive move, RBI Governor Sanjay Malhotra announced a 50 basis points reduction in the benchmark short-term lending rate, as revealed in the recent MPC meeting minutes.

This reduction, amounting to a total of 100 bps in rapid succession, signals the central bank's commitment to boosting economic growth despite global tensions.

The decision found support among the majority of the MPC members, marking a shift to a neutral policy stance, enabling future adaptability in response to domestic and global economic conditions.

(With inputs from agencies.)