RBI to ‘wait and watch’ before further rate cuts: Governor Malhotra

NEW DELHI:  Reserve Bank will “wait and watch” the evolving situation before deciding on any further rate cut, Governor Sanjay Malhotra has said as he emphasised that both growth and price stability are equally important.

With inflation on a downward trend, the RBI’s Monetary Policy Committee (MPC) has been reducing the benchmark repo rate and has adopted a neutral stance, which also gives the flexibility to either cut or hike the rate going forward. The central bank has cummulatively reduced the repo rate by 100 basis points since February.

In an interview to television channel CNBC-TV18, Malhotra said internal assessments are done on inflation outlook and he does not know whether it will be 3 per cent, as those calculations are still in the process of being done. PTI