RBI's Strategic Pause Amidst Global Economic Uncertainty

RBI Governor Sanjay Malhotra announced a policy status quo due to global uncertainties and rising core inflation. Despite frontloading rate cuts, GDP growth lags at 6.5%. Home loans show promise with 14% growth, but the depreciation of the rupee and trade negotiations remain concerns.

Reserve Bank of India Governor Sanjay Malhotra has opted to maintain the current policy stance in light of global uncertainties and a rise in core inflation. The decision follows significant interest rate cuts over a four-month period.

Speaking at the central bank headquarters, Malhotra reiterated RBI's focus on economic growth despite GDP expansion running at 6.5%, below desired levels. Home loan growth, however, is expected to progress at a healthy pace.

While addressing issues such as rupee depreciation and bad loan management, Malhotra emphasized that the RBI remains committed to stability and growth, aiming for a balanced approach to price stability and economic development.

(With inputs from agencies.)