Reserve Bank of India (RBI) Governor Shaktikanta Das indicated this week that the central bank’s Monetary Policy Committee (MPC) now sees significant room for a potential repo rate cut, citing a favorable alignment of macroeconomic indicators. Speaking at a public forum in Mumbai, the Governor highlighted that cooling inflation trends and resilient economic growth provide the necessary flexibility to transition toward a more accommodative stance, marking a potential shift in India’s interest rate trajectory for the first time in over a year.
The Evolution of India’s Monetary Stance
For the past several quarters, the RBI has maintained a
