Benign inflation outlook calls for lower real interest rates: RBI Guv

MPC minutes: Data suggests some slack persists in economy, said Deputy Guv Gupta

A benign outlook for both the headline and core inflation rates makes a case for real interest rates to be lower, said Reserve Bank of India (RBI) Governor Sanjay Malhotra, explaining his vote for a 25 basis-point cut in the repo rate in the December Monetary Policy Committee (MPC) meeting, as the cut will likely stimulate demand and be support growth, the minutes of the meeting, released on Friday, showed.

 

Additionally, Malhotra said real growth in gross domestic product (GDP) was poised to exceed 7 per cent this financial year (FY26), much above the earlier expectations of 6.5 per cent,