Reserve Bank of India (RBI) Governor Sanjay Malhotra is addressing the media in the post-monetary policy press conference, outlining key decisions of the Monetary Policy Committee (MPC). He is discussing the outlook on interest rates, EMIs, inflation, liquidity management and the overall economic situation.

Earlier in the day, the MPC unanimously decided to keep the policy repo rate unchanged at 5.25 per cent. The RBI expectedly kept the interest rates unchanged amid hopes of a global recovery on the back of a ceasefire in the six-week-long US-Israel-Iran conflict.

Malhotra said that the global economy is facing "unprecedented challenges" due to rising geopolitical tensions and supply chain disruptions. He noted that these factors are increasing uncertainty in financial markets and are adding pressure on inflation through higher energy prices.

Announcing the first bi-monthly monetary policy for the current fiscal, RBI Governor Sanjay Malhotra said the Monetary Policy Committee (MPC) has unanimously decided to retain the short-term lending rate or repo rate at 5.25 per cent with a neutral stance. The Monetary Policy Committee meeting was held on April 6, 7 and 8 to assess the evolving macroeconomic and financial conditions before arriving at the decision.

Despite global headwinds, the Governor emphasised that India's economic fundamentals remained strong and resilient. He stated that inflation is under control and below the central bank's target, while growth prospects are stable.

He also highlighted the impact of external factors such as currency movements and global demand on the domestic economy, adding that the RBI is vigilant to ensure price stability and support sustainable growth