The RBI’s Monetary Policy Committee (MPC) may cut the repo rate by 25 bps in Governor Sanjay Malhotra’s first policy move. Experts predicted a balanced approach to inflation and growth.

Governor Sanjay Malhotra, who took charge in mid-December, is likely to depart from the hawkish approach of his predecessor, Shaktikanta Das, who kept interest rates unchanged for two years as he doggedly chased a 4 per cent inflation target.

The Reserve Bank of India (RBI) reduced its key repo rate on Friday for the first time since May 2020, aiming to provide stimulus to the sluggish economy, which is projected to grow at its slowest pace in four years during the current fiscal year.