RBI Governor Sanjay Malhotra announced at the 5th Kautilya Economic Conclave that the policy rate remains unchanged, a stance that has kept the Indian base rate at a steady level while markets traded in a narrow range.
According to Malhotra, banks’ credit‑deposit ratios are comfortably high, signalling that lending capacity is intact even as the system absorbs external shocks such as the West Asia supply disruption.
The governor noted that Indian government bond yields have risen only partially in response to global oil and bond price movements, indicating that domestic sovereign borrowing costs remain manageable amid tightening global rates.
Finally, Malhotra highlighted that equity markets, which had corrected from over‑valued highs, may become attractive to foreign capital once the risk‑off sentiment subsides, but he urged vigilance against new cyber‑risk vectors that could trigger financial instability.