RBI governor Sanjay Malhotra has said that the extent of the downward trajectory of the repo rate is uncertain as of now, given the global economic uncertainties created due to US President Donald Trump’s tariffs. On a lighter note he said, “I’m Sanjay, but I’m not the Sanjay of Mahabharata…”

Amid the ongoing global tariff war, Reserve Bank Governor Sanjay Malhotra on Wednesday said he is more worried about its impact on growth than inflation.

Speaking to the media after presentation of the first bi-monthly monetary policy for the current financial year, Malhotra said, RBI has reduced the growth forecast for 2025-26 by 20 basis points to 6.5 per cent.

As far as the impact of US tariff on India, he said, “We have given our assessment as you can see, the growth rate, we have reduced by 20 basis points this year, primarily arising out of uncertainties.”

On the inflation front, he said, “it can actually move both ways, because of the surplus, because of the demand that is going to shrink as a result of the trade tariff friction. It may help on the inflation front”.

Malhotra’s remarks came at a media briefing on being asked if more interest rate cuts are in the offing, after he delivered the second straight interest rate cut since taking over as the RBI governor.

According to the Mahabharat, Sanjay was blessed with divine vision and used his power to relay actions at the Kurushetra battlefield to blind King Dhritarashtra at his palace.

He further said monetary policy and fiscal policy are acting in tandem to meet the growth-inflation targets.

“It is a joint effort… the government has done its bit in the Budget recently by taking a large number of measures in terms of the increased capex, tax rebates and we have reduced repo rate and changed the stance going forward, which means that the direction of the policy repo rate is downwards.

“Where it will reach… we really don’t know. I am Sanjay, but I am not Sanjay of Mahabharat to be able to foresee that far. I do not have the divine vision that he had,” he said.

He further said “we will jointly (with the government) try to manage the growth and the inflation dynamics in our country”.

Earlier in the day, Malhotra announced repo rate cut for the second consecutive time and signalled more easing ahead as the Reserve Bank of India (RBI) sought to bolster the economy in face of further pressure from damaging US tariffs