RBI Governor: Loans to Stay Cheap, Repo Rate Unlikely to Rise Soon Amidst Strong Growth

• RBI Governor Sanjay Malhotra expects interest rates to remain low for an extended period due to India's rapid economic growth.
• The Monetary Policy Committee (MPC) recently cut the repo rate by 25 basis points to 5.25%, a move Malhotra deems appropriate.
• Potential trade agreements with America and Europe could significantly boost India's GDP, with a US deal alone adding nearly 0.5%.
• Despite challenges like US tariffs impacting exports and a rising trade deficit, RBI is taking steps like liquidity provision to maintain economic stability.
• Malhotra defended the reliability of India's economic data, acknowledging normal discrepancies and revisions.

Why It Matters: India's strong economic growth and RBI's proactive measures signal continued low interest rates.