RBI: ‘Repo rate cut will increase private consumption’; RBI Governor had commented during MPC, minutes released
New Delhi| The cut in policy rates will boost private consumption and improve private corporate investment. Reserve Bank of India Governor Sanjay Malhotra said this in the Monetary Policy Committee (MPC) meeting earlier this month. During this time, Malhotra and five other MPC members had voted in favor of a 0.25 percent cut in the repo rate.
On April 9, the MPC headed by Governor Malhotra had reduced the short-term lending rate i.e. repo by 0.25 percent to six percent. This much reduction was made in February also.
RBI released the details of the MPC meeting. “When inflation based on consumer prices is decisively around its target level of four percent and growth is still normal and improving, monetary policy should support domestic demand to accelerate the pace of growth”, it said
Malhotra said in the meeting that this will increase private consumption and improve private corporate investment. He said that in view of the emerging trends of growth and inflation, monetary policy should be liberal in future also. The next MPC meeting is scheduled for June 4-6, 2025.
