RBI governor Sanjay Malhotra has said that the extent of the downward trajectory of the repo rate is uncertain as of now, given the global economic uncertainties created due to US President Donald Trump’s tariffs. On a lighter note he said, “I’m Sanjay, but I’m not the Sanjay of Mahabharata…”
Amid the ongoing global tariff war, Reserve Bank Governor Sanjay Malhotra on Wednesday said he is more worried about its impact on growth than inflation.
Speaking to the media after presentation of the first bi-monthly monetary policy for the current financial year, Malhotra said, RBI has reduced the growth forecast for 2025-26 by 20 basis points to 6.5 per cent.
As far as the impact of US tariff on India, he said, “We have given our assessment as you can see, the growth rate, we have reduced by 20 basis points this year, primarily arising out of uncertainties.”
On the inflation front, he said, “it can actually move both ways, because of the surplus, because of the demand that is going to shrink as a result of the trade tariff friction. It may help on the inflation front”.
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