RBI Governor Sanjay Malhotra said he was “not the Sanjay of Mahabharat” who could predict the extent of the downward journey of the interest-rate cut and at what level moderation would stop amid the ongoing global uncertainties caused by the US imposition of tariffs.

Malhotra was replying to a media query on whether more interest rate cuts were in the offing. After taking over as the RBI governor, the monetary policy committee (MPC), which he chairs, has announced two successive repo rate cuts of 25 basis points each to bring it down to 6%.

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.

Malhotra 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 and signalled more easing ahead as the Reserve Bank of India (RBI) sought to bolster the economy in face of pressure from US tariffs.

The move lowers borrowing costs to the lowest level since November 2022, amid easing inflation and a fall in oil prices.

Malhotra also assured that the RBI will maintain sufficient liquidity for speedier rate cut transmission.