Sanjay Malhotra: I am Sanjay, but not the Sanjay of Mahabharata… Why did the RBI Governor speak after the MPC meeting?

Sanjay Malhotra – Photo: PTI

Sanjay Malhotra: I am Sanjay, but not Sanjay of Mahabharata… Reserve Bank of India Governor Sanjay Malhotra said this after the announcement of MPC decisions on Wednesday. Let us know why the central bank governor made this comment about himself.

I am Sanjaya, but not Sanjaya of Mahabharata… Reserve Bank of India Governor Sanjay Malhotra said this after the announcement of MPC decisions on Wednesday April 9 , 2025 . He said that he is not Sanjaya of Mahabharata who can predict the future course of action on interest rates and also tell at what level the easing of interest rates will stop amid the current global uncertainties.

Malhotra’s remarks came at a media briefing when he was asked whether further interest rate cuts are likely, as he has cut interest rates for the second consecutive time since taking over as RBI Governor. According to Mahabharata, Sanjaya had divine sight and used his power to blind King Dhritarashtra in his palace by giving him details of the events taking place on the battlefield of Kurukshetra.

He further said that monetary policy and fiscal policy are working together to meet the GDP-inflation targets. “It is a joint effort… the government has contributed in the recent Budget by taking a number of measures in terms of increasing capital expenditure, tax exemptions and we have reduced the repo rate and changed the stance going forward, which means there is a direction of reduction in the policy repo rate,” he said.

“How far it will go… we don’t really know. I am Sanjaya, but I am not Sanjaya of Mahabharata to see that far. I don’t have his divine vision,” he said.

“We (together with the government) will try to manage the growth and inflation dynamics in our country,” he added.

Earlier in the day, Malhotra announced the second consecutive repo rate cut and hinted at more easing in future as the Reserve Bank of India (RBI) tries to shore up the economy in the face of further pressure from US tariffs.

After the 25 basis points rate cut, the key policy rate came down to 6 per cent. The move comes amid easing inflation and falling oil prices, bringing down borrowing costs to the lowest level since November 2022. Malhotra also assured that the RBI will maintain adequate liquidity to pass on the benefits of interest rate cuts faster.
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