RBI says growth failure is not a rate cut problem, defends liquidity stance

RBI refused a big cut to prove liquidity isn’t blocking growth

In a sharp message, the RBI argued that weak growth can’t be blamed on monetary policy alone. It pointed to its decision to avoid cutting rates by 35 bps or more, signaling that liquidity availability is not the binding constraint on growth. The stance seeks to limit the idea that more monetary easing would automatically translate into stronger economic performance.