In 2025, the economic landscape presented a unique set of challenges, and at the helm of the Reserve Bank of India’s Monetary Policy Committee (MPC) was Governor Sanjay Malhotra, whose leadership proved pivotal in navigating these turbulent waters.
The year saw the MPC diligently convene for all five of its scheduled meetings, each session a critical platform for strategic policy decisions designed to fortify the nation’s growth trajectory. Governor Malhotra’s vision was clear: to inject vitality into the economy when it needed it most.
The policy journey began with a proactive stance, marked by early rate reductions. This initial move was a deliberate signal from the RBI, aiming to stimulate demand and encourage investment. After these initial cuts, the mid-year brought a period of judicious observation, leading to a strategic pause. This allowed the MPC to carefully assess the impact of previous decisions and understand how they were rippling through the financial system.
However, as 2025 approached its conclusion, and with a clear understanding of the ongoing economic imperatives, Governor Malhotra and the MPC made another decisive move, implementing an additional rate cut. This comprehensive strategy, ultimately tallying up to a significant 125 basis points in rate reductions over the course of the year, underscores Governor Malhotra’s unwavering dedication and strategic foresight in his efforts to rescue growth and ensure economic stability.
Source: Original Article
