RBI's Cautious Approach Amid Economic Resilience
Sanjay Malhotra, Governor of the Reserve Bank of India, expressed optimism about low interest rates amid stable inflation. The central bank maintained its key policy rate and conveyed confidence in India's economic resilience, despite global uncertainties such as the West Asia conflict impacting energy and trade. Measures ensure stability in volatile currency markets.
- Country:
- India
In a decisive stance, Reserve Bank of India Governor Sanjay Malhotra signaled confidence in maintaining low interest rates amid benign inflation conditions. Addressing the media, Malhotra emphasized the strength and resilience of the Indian economy, while projecting a GDP growth of 6.9% for the fiscal year.
Despite global uncertainties, such as the prolonged West Asia conflict affecting energy supplies and trade, the RBI's Monetary Policy Committee unanimously decided to keep the repurchase rate steady at 5.25%. The Governor reassured that macroeconomic fundamentals remain strong, supporting growth and keeping price pressures in check.
Measures were also introduced to stabilize volatile currency markets, ensuring no structural shifts occur. Malhotra downplayed potential speculations in the Overnight Index Swap market, underlining the RBI's ongoing commitment to market development and stability.
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