The Monetary Policy Committee's first rate cut in five years in early February raised hopes of a series of reductions through 2025. For sure, the MPC took a unanimous decision to pencil a 25-basis-point cut in policy repo rate that came on the heels of a 4-2 decision in December to maintain status quo, Governor Sanjay Malhotra was emphatic that the MPC remained unambiguously focused on a durable alignment of inflation with the target while supporting growth.As is widely known, the decision—best described as satisficing—was taken amid growth concerns that fell well short of the Panglossian official outlook.
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