RBI Chief Sanjay Malhotra Jokes He’s No ‘Mahabharat Sanjay’ as He Signals Uncertain Path Ahead for Rate Cuts

Mumbai: Reserve Bank of India Governor Sanjay Malhotra offered a light-hearted moment during a press conference on Wednesday, stating, “I am Sanjay, but not the Sanjay from the Mahabharat,” when asked about the future trajectory of interest rate cuts.

Malhotra’s remark came shortly after he announced a second consecutive reduction in the repo rate since assuming office. While acknowledging global economic uncertainties, he said it would be premature to predict how far the rate cuts could go.

In the Mahabharat epic, Sanjay is a character blessed with divine vision, capable of narrating the battlefield events of Kurukshetra to the blind King Dhritarashtra. Referencing this, Malhotra said, “I do not possess the divine foresight Sanjay had. We don’t know yet where the rate will eventually settle.”

He emphasized the coordination between monetary and fiscal policy in managing economic growth and inflation. “It’s a joint effort. The government has already taken steps in the Budget—boosting capital expenditure and offering tax rebates. On our end, we’ve cut the repo rate and adjusted the policy stance, indicating a downward trend,” he said.

Malhotra also reassured that the central bank will ensure adequate liquidity to support effective transmission of monetary policy changes.

Earlier in the day, the RBI lowered the repo rate by 25 basis points to 6 percent—the lowest level since November 2022. The move comes in response to cooling inflation and declining oil prices, alongside growing concerns over the impact of fresh US tariffs on the Indian economy.