RBI Holds Rates Steady Amidst Optimism on Inflation Control

The Reserve Bank of India's decision to maintain current interest rates aligns with expectations, reflecting optimism in the nation's economic growth and inflation management. The RBI's shift to a neutral stance suggests potential future rate cuts, contingent on continued downward trends in inflation. Bankers view this move as both strategic and supportive of innovation in India's financial ecosystem.

The Reserve Bank of India (RBI) held interest rates steady while signaling optimism regarding inflation control, according to top banking officials on Wednesday.

SBI Chairman CS Setty praised the RBI's decision, noting the policy shift to a neutral stance as a proactive measure to align inflation with the 4% target in the face of robust economic growth.

Foreseeing future rate cuts, foreign lenders like Zarin Daruwala from Standard Chartered Bank cited strong FY25 economic projections as reasons for the RBI's newfound confidence in managing inflation.

(With inputs from agencies.)