RBI To Step-In With Additional Policy Measures In Case 50% Tariffs Become Effective: RBI Governor Sanjay Malhotra

Sanjay Malhotra, the Governor of the Reserve Bank of India (RBI) on Monday said that the central bank will step-in with additional policy measures in case the 50% US tariffs become effective this week.

What Did The Governor Say About US Tariffs?

"We have provided ample liquidity to the banking sector and whatever else is required to support the growth of the economy and including those of sectors which are impacted more. If it so happens, we will not be found wanting in our job," said Malhotra.

He further emphasised that while anchoring inflation has been one of the key priorities, the central bank has “not lost sight of growth amid uncertainties”.

Sanjay Malhotra Praises Indian Economy’s Resilience

Malhotra also praised the resilience of the Indian economy calling its achievements in the recent years "undoubtedly very creditable and widely recognised", despite facing unprecedented challenges.

What Did Sanjay Malhotra Say?

While speaking at the annual FIBAC conference, jointly organised by FICCI and the Indian Banks' Association (IBA) under the theme 'Charting New Frontiers', the Governor said that the economy has expanded significantly and is still a symbol of "resilience and hope".

He emphasised that India rebounded strongly after the pandemic, recording a compound annual growth rate (CAGR) of approximately 8% over the last four years.

He added that the International Monetary Fund (IMF), has projected India to remain among the world’s fastest-growing major economies.

Malhotra added that India is all set and projected to be the third largest economy in the coming years.

He also noted that the average inflation rate has been much lower in the last decade, particularly after adopting the inflation-targeting framework, averaging 4.9% per annum.

Also Read: Banks Holidays In August: Are Banks Closed For Three Days This Week?