NEW DELHI: The Reserve Bank of India (RBI) has decided to leave its benchmark policy interest rates unchanged, signalling confidence in the country’s economic outlook while maintaining a cautious approach towards inflationary risks.
Our Business Correspondent reports that presenting Monetary Policy statement, RBI Governor Sanjay Malhotra said that the country’s economic growth continues to be supported by resilient demand and it remains the world’s fastest-growing large economy. He said the country’s economy has performed better than expected in the April-June quarter of this fiscal.
Following the latest meeting of the Monetary Policy Committee (MPC), the central bank opted to keep the repo rate unchanged, indicating that the current monetary policy stance remains appropriate amid evolving domestic and global economic conditions.
At the same time, the RBI revised its economic projections, expressing greater optimism about India’s growth prospects. The central bank raised its forecast for economic expansion, citing resilient domestic demand, improving investment activity, healthy government capital expenditure and favourable macroeconomic conditions as key drivers expected to support momentum in the coming quarters.
In a positive development for consumers and businesses alike, the RBI also lowered its inflation outlook. The revised projections reflect easing price pressures, supported by improved food supplies, a favourable monsoon, stable commodity prices and better agricultural output. However, the central bank cautioned that inflation continues to warrant close monitoring due to uncertainties arising from global developments and volatile commodity markets.
The Monetary Policy Committee observed that while inflation has moderated considerably from previous highs, maintaining price stability remains essential for sustaining long-term economic growth. As a result, policymakers chose to retain existing interest rates rather than move towards either monetary tightening or easing at this stage.
Our Business Correspondent further adds that, the RBI noted that India’s economy continues to demonstrate resilience despite geopolitical tensions and external economic headwinds. Strong domestic consumption, steady credit growth and improving business sentiment were identified as factors contributing to the country’s robust economic performance.
The central bank also reiterated its commitment to taking timely policy measures should economic conditions change significantly. It said future monetary policy decisions would continue to be guided by incoming data on inflation, growth, global financial markets and domestic liquidity conditions.
Financial markets had widely anticipated the decision to maintain policy rates, with analysts viewing the combination of a higher growth forecast and a lower inflation projection as an indication that the RBI believes the economy is currently on a stable footing while remaining prepared to respond to emerging risks.
Dheeraj reports on governance, public services, jobs, and regional developments across Uttarakhand. He specialises in recruitment news, public-sector updates, and civic issues that impact everyday citizens. His reporting brings accuracy, context, and a grassroots perspective to local journalism.
