RBI keeping a close watch amid tariff tensions, Governor Sanjay Malhotra told the state of the economy and the future steps

Sanjay Malhotra On Economy: The governor said that the growth rate remains stable and the inflation situation looks favorable for the time being due to softening of food prices. However, he warned that a slight increase in inflation is possible in the coming months.

RBI Governor On Monetary Policy: The Reserve Bank of India (RBI) has adopted a cautious stance amid the global economic situation and geopolitical tensions created due to tariffs. RBI Governor Sanjay Malhotra said that in the current scenario, the central bank needs to proceed very cautiously. In the Monetary Policy Committee (MPC) meeting held between 4 and 6 August earlier this month, all six members voted in favor of keeping the key policy rate repo rate, unchanged at 5.5%.

In the details of the meeting released on Wednesday, Governor Malhotra said, "Overall, our economy presents a picture of strength, stability, and opportunity. India's strong economic condition, policies promoting growth, and visionary strategy put the country in a strong position."

Keeping an eye on inflation

The governor said that the growth rate remains stable and the inflation situation looks favorable for the time being due to the softening of food prices. However, he warned that a slight increase in inflation is possible in the coming months. He also said that tariffs and instability in the international market can pose risks in the future.

Focus on economy growth

Other members of the MPC also did not say that there is a need to change the rates in the current situation. Deputy Governor Poonam Gupta said that in view of the domestic economy and global situation, there is no scope for further reduction in policy rates at the moment. Rajiv Ranjan, Executive Director, said that the Indian economy is still strong. Government spending, rural demand and strength of the service sector remain its support, although some fluctuations are being seen in the industry.

It is clear that the RBI is currently maintaining a cautious policy while keeping an eye on inflation and global uncertainties. If the global situation remains stable in the coming months, the possibility of a change in monetary policy may be reconsidered.