New Reserve Bank of India Governor faces key rate decision amid slowing growth and lower inflation

Sanjay Malhotra, the new Governor of the Reserve Bank of India, faces a challenging economic landscape as he prepares for his first policy review. Unlike his predecessors, who had varied approaches, Malhotra inherits a situation with moderated growth and lower inflation expectations. Previous governors have either raised or cut rates based on economic conditions. Raghuram Rajan raised rates, while Urjit Patel and Shaktikanta Das opted for cuts. Malhotra's decision will be closely watched as the market speculates on potential rate changes. The economy shows signs of slowing growth, particularly in mass consumption, but inflation is expected to decrease due to stabilizing food prices. Malhotra's first rate decision will reflect these current economic conditions.