Amid a challenging economic climate impacting sectors like automotive and FMCG, Maruti Suzuki Chairman R.C. Bhargava anticipates a potential rate cut by the Reserve Bank of India (RBI) early next year, provided inflation continues its downward trend.
Bhargava praised the central bank’s efforts in maintaining a delicate balance between growth and inflation control, crediting this approach for India’s resilient economic performance despite global challenges.
As inflation levels, both wholesale and retail, continue to show moderation, Bhargava is optimistic about a rate cut early next year, an action that could further boost demand in consumption-sensitive sectors such as automotive and FMCG. “If inflation comes down a bit more, I would imagine that early next year we might see a rate cut,” he told Business Today TV on Wednesday.
“The RBI has been very conscious of the need to balance economic growth with inflation control,” he said, highlighting that unlike in past cycles, the central bank has maintained a steady approach, avoiding drastic measures in either direction. This strategy, he said, has helped keep inflation under control while supporting steady growth, even as other economies grappled with inflationary pressures.
Bhargava also applauded the coordinated efforts of the RBI and the Indian government, suggesting that their balanced approach has bolstered India’s economic standing amidst global volatility.
