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With Inflation Below 3.7%, RBI Unlikely To Change Rates
New Delhi, July 16 (KNN) India’s central bank expects headline inflation to remain below 3.7 percent for the current financial year, Reserve Bank of India (RBI) Governor Sanjay Malhotra said in an interview with CNBC-TV18 on Tuesday.
The assessment comes as inflationary pressures ease, supported by a decline in food prices and a stable macroeconomic environment.
“Inflation is expected to stay below 3.7 percent for the full year,” Malhotra stated, adding that the Monetary Policy Committee (MPC) will base future rate decisions on the broader inflation outlook rather than immediate price movements.
His remarks follow the release of June consumer price index (CPI) data, which showed annual retail inflation slowing to 2.10 percent—the lowest level in over six years.
The June inflation figure was near the lower bound of the RBI's 2-6 percent tolerance band, prompting economists to anticipate another rate cut in the