Reserve Bank Governor Sanjay Malhotra on Friday announced the Monetary Policy Committee's (MPC) decision on Friday, with the committee keeping the key policy rate unchanged at 5.25%. The pause reflects a cautious stance amid the ongoing West Asia conflict, which poses risks to both inflation and economic growth. The six-member MPC began its three-day policy meeting on Wednesday.
In April, the Reserve Bank left the benchmark policy rate unchanged, opting for a cautious wait-and-watch approach as it evaluated the impact of the West Asia conflict on energy markets, inflationary pressures and economic growth.
