Low interest rates may persist amid benign inflation, says RBI Governor
This image was generated by AI and may not depict real events.
The Reserve Bank of India has kept its benchmark repo rate unchanged at 5.25%, citing a cautious approach due to global shocks and uncertainty. The central bank projects GDP growth at 6.9% for the current financial year and inflation at 4.6% for FY27, within its target band.
The Reserve Bank of India has maintained its neutral policy stance, keeping the benchmark repo rate unchanged at 5.25%. This decision reflects a cautious approach due to global shocks and uncertainty. The central bank has projected GDP growth at 6.9% for the current financial year. Inflation is expected to be 4.6% for FY27, within the target band of 2-6%. The RBI has factored in the recent ceasefire between the US and Iran into its policy assessment. The bank's governor, Sanjay Malhotra, expressed confidence that interest rates could remain low over the medium to long term due to benign inflationary conditions and strong macroeconomic fundamentals.
This content was automatically generated and/or translated by AI. It may contain inaccuracies. Please refer to the original sources for verification.