Hindi English Translation || Editorial || ​Time for action: On the RBI pausing rate cuts

​Time for action: On the RBI pausing rate cuts

The Reserve Bank of India did well to pause rate cuts amid (के बीच में) the uncertainties

The Reserve Bank of India’s (RBI) Monetary Policy (मौद्रिक नीति) Committee was sensible to pause (रोकना, विराम देना) its rate cuts (ब्याज दर में कटौती), as announced on Wednesday (August 6, 2025). RBI Governor Sanjay Malhotra rightly pointed out (इंगित करना) that the uncertainties (अनिश्चितता, अस्थिरता) surrounding tariffs are still evolving (विकसित होना), and that the 100 bps of rate cuts implemented since February 2025 are still percolating (धीरे-धीरे फैलना) through the system. Mr. Malhotra’s statement was made before U.S. President Donald Trump approved an additional 25% tariff on imports from India, over and above (के अतिरिक्त, के अलावा) the existing 25% reciprocal tariffs. However, his assessment (मूल्यांकन, आकलन) that the matter is far from (से बहुत दूर, बिल्कुल नहीं) over was nevertheless (फिर भी, तथापि) accurate. India is still in the process of negotiating (बातचीत करना, मोलभाव करना) a Bilateral Trade Agreement (द्विपक्षीय व्यापार समझौता) with the U.S., and the final tariffs are far from decided. In the meantime (meanwhile, in the interim, in the intervening period), Mr. Trump has already indicated that similar additional tariffs — “penalties” for buying oil from Russia — may be imposed on other countries as well, which will impact India’s comparative advantage (an economy’s ability to produce goods or services for a lower opportunity cost than others. Opportunity cost refers to the price of the next best thing you could have done had you not made your first choice). Leaving room for another rate cut later in the year when things might be clearer, thus, was the sensible thing to do. The other broad (comprehensive, extensive, wide, wide-ranging, or broad-ranging) reason why the pause makes sense is that it allows the RBI to see whether such monetary (financial, fiscal, budgetary, economic) measures (action, procedure, operation, programme) are working. A 100 bps cumulative (aggregate; accruing, collective, combined) cut in rates over the last six months is significant, and the banking system needs time to pass that on to borrowers. The Governor also pointed out that there is ample (enough, sufficient, adequate) liquidity ((in the banking system) it refers to readily available cash that banks need to meet short-term business and financial needs) in the system, which means the banks have the money to lend (give, provide, grant).

The question, however, is whether there is enough growth-related borrowing happening. RBI data show that, as of (on or after; starting from; in the time following) end-June, loans to purchase consumer durables (manufactured products/goods (such as TV, fridge, AC, motorbike, car & etc.) which last for an extended period of time) had contracted (decline, decrease, diminish, reduce) about 3% compared to the previous year. Growth in housing loans slowed sharply to 9.6% from 36% a year earlier, while vehicle loans too slowed by five percentage points (the difference between two percentages is termed as percentage point. (for example: “Interest Rates Jump From 10% to 12%”. In this case, the interest rate increased by “2 percentage points” or you can say that the interest rate is increased by 20%)) over the last year. In line with (in agreement with, in alignment with, in accordance with, consistent with or compatible with) this subdued (restrained, controlled, toned down, muted) demand outlook (the expected future demand for a product/service based on current trends, economic conditions, consumer preferences, and other influencing factors), companies too seem (appear, look) to be slowing their borrowing. Loans to industry grew 5.5% in June 2025, down from 8.1% in June last year. Simply reducing rates, therefore, is not enough and that is something the Governor alluded (refer to, suggest, imply, hint at, mention, cite, speak, call attention to something briefly/indirectly) to when he said stronger policy frameworks (a set of principles and long-term goals that form the basis of making rules and guidelines for achieving particular objectives) “across domains, and not just limited to monetary policy”, would be pivotal (central, vital, significant/important, crucial/critical) in achieving India’s growth potential (the capacity or ability of an individual or a business or a country’s economy to expand, improve, and achieve higher levels of performance over time). The government has to intervene in a more focused manner than just increasing capital expenditure across the board (applying to all). A lot can be done through tax. The Goods and Services Tax rate rationalisation (systematisation, formalisation, justification, explanation), that was promised several times, is long overdue (late, behind time, long-delayed, belated, postponed, tardy). A reduction in fuel prices in line with lower oil prices, too, will lift (raise, uplift, boost, elevate, improve) consumer sentiment (consumer confidence; an economic indicator that measures how optimistic consumers feel about their finances and the state of the economy). The RBI can, for the moment (for now, for the present; for the time being; temporarily), afford (bear, sustain, stand) to wait things out. The government does not have this luxury (comfort, advantage, blessing, benefit, advantage, boon, ease).

Courtesy: The Hindu

Important Word List With Meaning

1.rate cut (noun)

Hindi Meaning - ब्याज दर में कटौती
English Meaning - a decision by a central bank (like RBI in India) to reduce its main interest rate to the banks (like SBI, ICICI & etc in India) when these commercial banks get money from the central bank. Once this rate goes down, the banks are in a position to give loans at lower interest rates to individuals and the industry.

2.pause (verb)

Hindi Meaning - रोकना, विराम देना
English Meaning - stop, halt, cease, delay, break off, discontinue briefly/temporarily.

3.amid (preposition)

Hindi Meaning - के बीच में
English Meaning - in the middle of, surrounded by; during.

4.uncertainty (noun)

Hindi Meaning - अनिश्चितता, अस्थिरता
English Meaning - unpredictability, unreliability, riskiness/precariousness.

5.monetary policy (noun)

Hindi Meaning - मौद्रिक नीति
English Meaning - monetary policy refers to the use of monetary instruments under the control of the central bank to regulate magnitudes such as interest rates, money supply, and availability of credit with a view to achieving the ultimate objective of economic policy mentioned in the Reserve Bank of India Act, 1934.

6.point out (phrasal verb)

Hindi Meaning - इंगित करना
English Meaning - indicate, specify, suggest, refer to, mention, allude to.

7.evolve (verb)

Hindi Meaning - विकसित होना
English Meaning - develop gradually; unfold.

8.percolate (verb)

Hindi Meaning - धीरे-धीरे फैलना
English Meaning - spread gradually, be disseminated, pass/go slowly (through a group of people).

9.over and above (phrase)

Hindi Meaning - के अतिरिक्त, के अलावा
English Meaning - in addition to, on top of, over and beyond, plus, as well as, besides, along with.

10.reciprocal tax (noun)

Hindi Meaning - पारस्परिक कर
English Meaning - a tax imposed by one country on imports from another country in response to similar tariffs. The tariffs aim to match or offset tariffs and other trade barriers imposed on US goods by foreign nations.

11.assessment (noun)

Hindi Meaning - मूल्यांकन, आकलन
English Meaning - evaluation, expectation, analysis, judgement, estimation.

12.far from (phrase)

Hindi Meaning - से बहुत दूर, बिल्कुल नहीं
English Meaning - not, not at all; nowhere near, a long way from.

13.nevertheless (adverb)

Hindi Meaning - फिर भी, तथापि
English Meaning - nonetheless, notwithstanding, however, even so, in spite of that.

14.negotiate (verb)

Hindi Meaning - बातचीत करना, मोलभाव करना
English Meaning - discuss terms, hold talks, discuss a settlement, talk, try to reach a compromise.

15.Bilateral Trade Agreement (BTA) (noun)

Hindi Meaning - द्विपक्षीय व्यापार समझौता
English Meaning - a formal agreement/deal between two countries which outlines specific terms for trade, commerce, transit, or investment.

16.basis point (BPS) (noun)

English Meaning - a unit of measure used in finance to describe the percentage change in the value or rate of a financial instrument. One basis point is equivalent to 0.01% (1/100th of a percent). Used for measuring change in interest rate/yield.

17.tariff (noun)

English Meaning - a tax imposed by one country on the goods and services imported from another country.

18.the monetary policy committee (MPC) (noun)

English Meaning - it is a six-member panel that is expected to bring “value and transparency” to rate-setting decisions. It will feature three members from the RBI — the Governor, a Deputy Governor and another official — and three independent members to be selected by the Government. The MPC will meet four times a year to decide on monetary policy by a majority vote.

19.counter-tariff (or) retaliatory tariff (noun)

English Meaning - punitive tariff; an extra tariff/tax that a country charges on import goods from another country to punish the another country for charging tax on its own export goods.

20.bilateral (adjective)

English Meaning - involving two groups or countries.

21.In the meantime (phrase)

English Meaning - meanwhile, in the interim, in the intervening period.

22.comparative advantage (noun)

English Meaning - an economy’s ability to produce goods or services for a lower opportunity cost than others. Opportunity cost refers to the price of the next best thing you could have done had you not made your first choice.

23.leave room (phrase)

English Meaning - allow space, time, or possibility for something else.

24.broad (adjective)

English Meaning - comprehensive, extensive, wide, wide-ranging, or broad-ranging.

25.make sense (phrase)

English Meaning - be accepted, be convincing, hold up, prove true.

26.monetary (adjective)

English Meaning - financial, fiscal, budgetary, economic.

27.measure (noun)

English Meaning - action, procedure, operation, programme.

28.cumulative (adjective)

English Meaning - aggregate; accruing, collective, combined.

29.pass on (phrasal verb)

English Meaning - to transfer, transmit, or hand over something to someone else.

30.ample (adjective)

English Meaning - enough, sufficient, adequate.

31.liquidity (noun)

English Meaning - the availability of liquid assets; liquidity means liquid assets; cash; (liquid asset is an asset which can be easily sold/converted into cash without losing its value); a measure of activity (i.e. the ability to buy or sell easily) in a market.

32.liquidity (noun)

English Meaning - (in the banking system) it refers to readily available cash that banks need to meet short-term business and financial needs.

33.lend (verb)

English Meaning - give, provide, grant.

34.as of (preposition)

English Meaning - on or after; starting from; in the time following.

35.consumer durables (noun)

English Meaning - manufactured products/goods (such as TV, fridge, AC, motorbike, car & etc.) which last for an extended period of time.

36.consumer non-durables (noun)

English Meaning - products/goods (such as food, clothing, fuel, etc.) which are produced for immediate use and frequently replaced by the consumer

37.contract (verb)

English Meaning - decline, decrease, diminish, reduce.

38.percentage point (noun)

English Meaning - the difference between two percentages is termed as percentage point. (for example: “Interest Rates Jump From 10% to 12%”. In this case, the interest rate increased by “2 percentage points” or you can say that the interest rate is increased by 20%).

39.in line with (phrase)

English Meaning - in agreement with, in alignment with, in accordance with, consistent with or compatible with.

40.subdued (adjective)

English Meaning - restrained, controlled, toned down, muted.

41.demand outlook (noun)

English Meaning - the expected future demand for a product/service based on current trends, economic conditions, consumer preferences, and other influencing factors.

42.(outlook) (noun)

English Meaning - prospects, expectations, chances, future.

43.seem (verb)

English Meaning - appear, look.

44.allude (verb)

English Meaning - refer to, suggest, imply, hint at, mention, cite, speak, call attention to something briefly/indirectly.

45.framework (noun)

English Meaning - structure, system, organization.

46.policy framework (noun)

English Meaning - a set of principles and long-term goals that form the basis of making rules and guidelines for achieving particular objectives.

47.luxury (noun)

English Meaning - enough or plenty of something (time/advantage/wealth) to do something.

48.pivotal (adjective)

English Meaning - central, vital, significant/important, crucial/critical.

49.potential (noun)

English Meaning - possibility, potentiality, prospects, capacity.

50.growth potential (noun)

English Meaning - the capacity or ability of an individual or a business or a country’s economy to expand, improve, and achieve higher levels of performance over time.

51.capital spending/capital expenditure (CAPEX) (noun)

English Meaning - the money spent on the acquisition of assets like land, buildings, machinery, equipment, as well as investment in shares.

52.across the board (phrase)

English Meaning - applying to all.

53.rationalisation (noun)

English Meaning - systematisation, formalisation, justification, explanation.

54.overdue (adjective)

English Meaning - late, behind time, long-delayed, belated, postponed, tardy.

55.lift (verb)

English Meaning - raise, uplift, boost, elevate, improve.

56.consumer sentiment (noun)

English Meaning - consumer confidence; an economic indicator that measures how optimistic consumers feel about their finances and the state of the economy.

57.sentiment (noun)

English Meaning - point of view, way of thinking, feeling, attitude, thought, opinion, belief. ​

58.for the moment (phrase)

English Meaning - for now, for the present; for the time being; temporarily.

59.afford (verb)

English Meaning - bear, sustain, stand.

60.to wait things out (phrase)

English Meaning - to remain inactive and go through a difficult or unpleasant situation until it finally ends or improves.

61.luxury (noun)

English Meaning - comfort, advantage, blessing, benefit, advantage, boon, ease.