Interest Rates May Remain Low for Extended Period - Sanjay Malhotra

RBI Governor Sanjay Malhotra has stated that the GDP growth has been surprising, leading RBI to revise its growth estimate for the economy. The RBI had initially projected a 7% GDP growth for the July-September quarter, but the actual GDP growth for the September quarter stood at 8.2%.

Statement on Interest Rates

RBI Governor Sanjay Malhotra expressed optimism that interest rates will remain low for an extended period due to strong economic growth and potential trade agreements with the US and Europe. Malhotra shared these insights in an interview with the Financial Times. Earlier this month, the RBI reduced the repo rate by 0.25%, bringing it down to 5.25%.

Malhotra emphasized that the RBI's current GDP growth estimates did not factor in the potential benefits of trade agreements with the US and Europe. He highlighted that if trade deals with these regions are finalized, it could add about half a percent to the country's GDP growth.

Impact on Growth

According to Malhotra, trade deals will further strengthen the country's economy. He expects that the benefits from these trade agreements will help maintain low-interest rates in the coming period, benefiting both investors and consumers.