Mumbai, Feb. 7 -- In his first Monetary Policy announcement on Friday, Reserve Bank of India (RBI) Governor Sanjay Malhotra stated that the Monetary Policy Committee (MPC) had unanimously decided to reduce the policy rate by 25 basis points (bps) from 6.5 per cent to 6.25 per cent.

Malhotra highlighted the challenges posed by the global economic landscape, noting that while high-frequency indicators suggest resilience and expansion in trade, overall global growth remains below historical averages. "Progress on global disinflation is stalling, hindered by services price inflation," Malhotra said.

Discussing global financial market dynamics, Malhotra pointed out that expectations regarding the size and pace of rate cuts in the United Stat...