Repo Rate : In an unexpected yet witty statement, Reserve Bank of India (RBI) Governor Shaktikanta Das quipped, “I am not Sanjay of Mahabharata” when asked about the future trajectory of repo rates. His response—evocative of Indian mythology—was not just humorous but also deeply telling about the complexities of monetary policy during times of global turbulence, especially amid Trump’s tariff threats and looming global economic headwinds.
But what exactly did he mean? And more importantly—how does it affect you, your car loan, home EMI, or business?
Let’s dive into the RBI’s cautious stance, how global geopolitics is influencing your money, and what to expect next.
📉 What Is the Repo Rate, and Why Should You Care?
Before we get into mythological metaphors, here’s a quick primer.
Repo rate is the rate at which the RBI loans funds to commercial banks. It’s a critical tool in controlling inflation and ensuring economic growth. When the repo rate goes up, borrowing becomes expensive—affecting loans, EMIs, and investments. When it goes down, it encourages spending and growth.
👇 Here’s how repo rate impacts your life:
- Home Loans & EMIs: Higher repo = higher interest rates.
- Car Loans: New or pre-owned car finance becomes costlier.
- Fixed Deposits & Savings: Rate hikes benefit depositors.
- Business Loans: Startups and SMEs feel the pinch with increased lending costs.
🧠 Why Did the RBI Governor Reference Sanjay from Mahabharata?
In the Mahabharata, Sanjay was gifted divine vision by sage Vyasa to narrate the Kurukshetra war in real-time to King Dhritarashtra.
So, when the RBI Governor said “I am not Sanjay”, he humorously emphasized that he can’t foresee the future—especially in a volatile, global economic battlefield shaped by unpredictable events like:
- Donald Trump’s tariff threats on global trade
- Fluctuating crude oil prices
- US-China trade tensions
- Geopolitical instability in the Middle East
- Global inflation concerns
🌍 Global Factors vs. Domestic Priorities: A Balancing Act
India’s monetary policy is no longer shaped by domestic factors alone. Trump’s trade wars sent shockwaves through global markets, influencing:
- Commodity prices
- Foreign investments
- Currency volatility
The RBI, as a central bank, must weigh these global risks against domestic goals like:
- Keeping inflation within 4-6%
- Supporting economic growth
- Ensuring financial stability
That’s why even if inflation seems under control, rate cuts may not happen if global uncertainty looms.
📊 The Monetary Policy Tightrope: Caution Over Prediction
At the Monetary Policy Committee (MPC) meeting, the RBI decided to keep the repo rate unchanged at 6.50%, citing uncertainty in the global economy. While this might disappoint borrowers hoping for rate cuts, the RBI’s strategy is “wait and watch.”
Key takeaways from RBI’s stance:
- No rate cuts for now
- Focus on inflation targeting
- Observing international risks like tariffs and oil prices
- Support for financial sector reforms
🔍 What This Represents for Borrowers and Investors
If you have loans, this might be a good time to lock in fixed interest rates. With no repo rate cuts on the horizon, don’t expect EMIs to drop anytime soon.
For investors, RBI’s caution suggests the central bank wants to avoid a knee-jerk reaction to short-term trends. Fixed-income instruments may stay stable. However, equity markets might remain volatile depending on global news.
🛡️ RBI’s Pragmatic Approach: Patience, Not Prophecy
The Governor’s “Sanjay” comment underscores an important point: Monetary policy is not clairvoyance. Rather than giving speculative guidance, the RBI is concentrating on data-driven, flexible decision-making. This builds credibility and ensures markets don’t misinterpret signals.
🧩 The Bottom Line: Don’t Expect Crystal Ball Predictions
In a world where a tweet from Donald Trump can move global markets, even the RBI prefers pragmatism over prediction.
So, while you may not get the clarity of a “Sanjay,” what you do get is a central bank focused on stability, not short-term populism.
💬 Final Thoughts: What Should You Do Now?
- Borrowers: Consider refinancing options now before future hikes.
- Savers: Look for FDs with better returns as rates stabilize.
- Investors: Stay diversified and hedge against global volatility.
- Businesses: Build buffer capital to withstand rising borrowing costs.
The RBI might not have divine foresight, but its strategic silence signals a commitment to stability, not speculation.
📥 Got Thoughts on RBI’s Move?
Have you felt the impact of the unchanged repo rate on your finances or business? Drop a comment below or share this post with someone who needs to stay ahead of these economic shifts.
🙋 Frequently Asked Questions (FAQs)
🔹 Why did the RBI governor say, “I am not Sanjay of Mahabharata”?
He used the metaphor to express that predicting future rate moves amidst global uncertainties is not possible—just like Sanjay had divine foresight, which he doesn’t.
🔹 How do Trump’s tariff policies affect Indian repo rates?
They create global market volatility, impacting oil prices, trade flows, and inflation—factors RBI must consider before altering rates.
🔹 Will repo rates increase in 2025?
It depends on inflation trends, global economic outlook, and domestic demand. As of now, RBI is adopting a cautious stance.
🔹 How can I prepare for uncertain interest rates?
Opt for fixed-rate loans, maintain emergency funds, and diversify your investments to mitigate the impact of rate fluctuations.
🔹 What is the current RBI repo rate?
As of the latest MPC meeting, the repo rate is 6.50%.
🔗 Internal Links:
- How Interest Rate Hikes Affect Car Loan EMIs
- Top Investment Options During Market Volatility
- Decoding India’s Inflation Trends in 2025
🌐 External References:
📣 Enjoyed This Breakdown?
If you found this post insightful, share it with your friends, or leave a comment with your thoughts on the RBI’s stance. Want more breakdowns like this? Subscribe to our newsletter for weekly updates on finance, lifestyle, and tech!
