The Reserve Bank of India on Wednesday announced its latest monetary policy decision. The Monetary Policy Committee, led by RBI Governor Sanjay Malhotra, has kept the repo rate unchanged at 5.25 percent, while maintaining its policy stance as ‘neutral’.
The decision comes amid cautious optimism of a global recovery following easing tensions in the six-week-long US-Israel-Iran conflict.
RBI Governor Sanjay Malhotra said India’s GDP growth is projected at 7.6 percent, highlighting strong economic momentum driven by consumption and investment. However, he cautioned that elevated energy and commodity prices due to disruptions in the Strait of Hormuz could impact growth in the coming year.
Governor Malhotra also said that inflation has remained below target, with CPI inflation projected at 4.6% for this year.
