RBI Governor Sanjay Malhotra said the central bank may cut interest rates again if inflation falls below projections or growth weakens.
He emphasized that both inflation control and economic growth are top priorities for the RBI.
India’s inflation rate recently hit a six-year low, mainly due to falling food prices.
The RBI has already cut the repo rate by 100 basis points since February.
Its current policy rate stands at 5.5%, and the stance has shifted to neutral.
Economists are divided on whether another rate cut will happen in the August 6
meeting.
The RBI will continue to be “data-dependent,” watching inflation and growth closely.
A report on liquidity management is expected by the end of July, as RBI reviews its
frameworks.