Policy space to open up if inflation is below projections: RBI Governor

Reserve Bank of India Governor Sanjay Malhotra reiterated that the RBI will continue to watch the incoming data on inflation and growth, and take a call

While cutting the key policy repo rate by 50 basis points (bps) and changing its policy stance to neutral from accommodative in its June review, the Reserve Bank of India said that monetary policy is left with limited space to support growth. Sanjay Malhotra, Governor, Reserve Bank of India, explains the rationale behind the large rate cut and the change in stance while clarifying the role of the cash reserve ratio in an exclusive interview with Manojit Saha in Mumbai. He reiterated that the RBI will continue to watch the incoming data on inflation and growth, and take a call.