RBI: Global Uncertainties Could Derail Growth, Investment, Consumption

It’s the big Reserve Bank of India announcement which was eclipsed by the Repo Rate cut. Despite cutting key interest rates after nearly five years, the RBI’s Monetary Policy Committee decided to keep its stance at ‘neutral’. In Governor Sanjay Malhotra’s own words, “This will provide MPC the flexibility to respond to the evolving macroeconomic environment.” The 6-member rate-setting panel decided on this course of action given the “excessive volatility in global financial markets and continued uncertainties about global trade policies.” In his press briefing after the policy announcement, the RBI Governor said the global uncertainties was “the higher worry” as it could directly impact growth, investment decisions and even consumption expenditure decisions.