RBI Governor Calls for Growth-Oriented Monetary Policy Amid Falling Inflation

At the June 4–6 MPC meeting, RBI Governor Sanjay Malhotra emphasized that with retail inflation sharply declining—from 6.2% in October 2024 to 3.2% in April 2025—monetary policy must now support growth while maintaining price stability. The MPC cut the repo rate by 50 basis points to 5.5%, shifting the stance from accommodative to neutral. Most members supported the rate cut, citing the need to boost investment and consumption. However, some cautioned against over-easing amid global uncertainties. The rate cut is expected to lower borrowing costs, spur demand, and convey strong policy support for sustaining India’s economic growth momentum.