Sanjay Malhotra Asserts Confidence in Sustained Low Interest Rates

Reserve Bank Governor Sanjay Malhotra expressed confidence that interest rates will remain low due to stable inflation. Despite global shocks, the RBI projects a GDP growth of 6.9% for India this year. The central bank's decision to keep policy rates unchanged reflects caution amidst geopolitical uncertainties.

On Wednesday, Reserve Bank Governor Sanjay Malhotra conveyed optimism about sustaining low interest rates, crediting benign inflationary trends during a post-monetary policy press conference.

Malhotra emphasized India's robust economic conditions while projecting a GDP growth of 6.9% for the current financial year, despite facing external shocks. This cautious stance stems from geopolitical issues, notably the Iran conflict's impact on energy and trade.

The Reserve Bank of India's recent decision to keep its key policy rate unchanged at 5.25% underscores a vigilant approach amid increasing global uncertainties affecting inflation and growth.

(With inputs from agencies.)