RBI Governor Sanjay Malhotra is addressing a press conference following the announcement of decisions of the Monetary Policy Committee meeting.  The Reserve Bank on Friday kept interest rates unchanged for the second time in a row as it weighed the impact of rising energy prices and supply disruptions caused by the West Asia crisis.

The policy decision comes amid a three-month-long conflict in West Asia that has disrupted energy supplies, leading to a surge in crude oil prices and creating fiscal and inflationary pressures for import-dependent countries like India. The interest rate pause comes even as the Consumer Price Index (CPI) based headline retail inflation has moved closer to the RBI's medium-term target of 4 per cent at 3.48 per cent in April. Moreover, there is fear of inflation further inching up due to the expected weak monsoon and fuel price rise in the coming months.