Rate Cut Right Policy Response: RBI Guv

Mumbai: Reserve Bank Governor Sanjay Malhotra opined that rate reduction was an appropriate monetary policy response at this juncture citing movement of inflation towards the central bank’s 4 per cent target, said the MPC meeting minutes released on Friday.

Malhotra, along with five other members of the Monetary Policy Committee (MPC) had voted for a 25 basis points reduction in the short-term lending rate (repo) to 6.25 per cent.