Economy
RBI Rules Out Near-Term Rate Cuts, Leaves Pause Or Hike Open
The RBI ruled out near-term rate cuts, keeping a pause or hike on the table as inflation remains elevated.
What happened
Governor Sanjay Malhotra said the Monetary Policy Committee considered all rate options, including a 50-basis-point hike. He said the RBI’s changed stance means there will be no rate cut in the near term; the next decision could be a pause or a hike. The choice will depend on evolving growth, inflation and underlying price pressures.
Why it matters
Borrowing costs are not set to ease soon, while businesses and investors must account for the possibility of tighter monetary policy if inflation remains persistent.
Source: RBI Speeches