RBI Governor Hints at Further Rate Cuts Amid Shift to Accommodative Stance

RBI Governor Sanjay Malhotra indicated a shift in monetary policy towards an 'accommodative' stance, hinting at potential further rate cuts. Announcing changes after a Monetary Policy Committee meeting, Malhotra emphasized the stance should not be tied to liquidity conditions. Liquidity has improved, with current surplus reaching Rs 1.5 lakh crore.

In a significant policy shift, Reserve Bank of India Governor Sanjay Malhotra has signaled additional rate cuts following a change in the central bank's monetary stance from 'neutral' to 'accommodative'. This decision is expected to lead to lower EMIs for consumers.

The announcement came after the Monetary Policy Committee meeting, where Malhotra clarified that the change in stance is a strategic move indicating potential rate cuts, depending on future economic developments. It should not be directly linked to liquidity conditions in the market.

The move reflects improved liquidity conditions, with the system now experiencing a surplus. Governor Malhotra assured that the RBI would continue to ensure sufficient liquidity in the financial system while remaining vigilant to evolving market conditions.

(With inputs from agencies.)