Global central banks, including the US Federal Reserve and the European Central Bank, eased monetary policies with December rate cuts of 0.25%. This has sparked speculation about whether India’s central bank will follow suit in its upcoming Monetary Policy Committee (MPC) meeting from February 5-7, 2025. All eyes are on the newly appointed RBI Governor Sanjay Malhotra, a Princeton-educated economist with extensive policy experience. He faces the dual challenge of managing inflation while supporting India’s economic recovery amid slowing global growth. Under former RBI Governor Shaktikanta Das, India maintained a cautious monetary policy stance, balancing inflation concerns with the need to boost GDP growth. His tenure saw aggressive rate cuts during the COVID-19 crisis and a focus on financial stability. The recent 50-basis-point cut in the Cash Reserve Ratio (CRR), releasing ₹1.16 lakh crore into the banking system, hints at some willingness to ease liquidity constraints under the new leadership. With global central banks signaling accommodative stances, market participants await the RBI’s next policy move. Will India’s central bank align with the global trend or adopt a more measured approach? The February MPC meeting holds critical implications for India’s economic trajectory in 2025. Watch expert insights from Indranil Pan, Chief Economist at YES Bank, and Sunil Sinha, Economist.