India rates to stay low for a long time, central bank governor tells Economic Times

try{ var _=i o; . if(!_||_&&typeof _==="object"&&_.expiry Asia stocks slide as US-Iran strikes batter risk appetite Oil prices surge after US-Israel strikes on Iran, trim early gains Gold prices jump 2% amid widening US-Israel conflict with Iran Middle East tensions rise as Iran promises retaliation (South Africa Philippines Nigeria) India rates to stay low for a long time, central bank governor tells Economic Times By Reuters Economy Published 03/02/2026, 12:59 AM Updated 03/02/2026, 01:00 AM India rates to stay low for a long time, central bank governor tells Economic Times 0 MUMBAI, March 2 - Interest rates in India will remain "around this level or lower" for a long time, barring any shocks, the country’s central bank governor told the Economic Times newspaper in an interview published on Monday. Here are some of his key comments: * The Reserve Bank of India’s effort is to align theweighted average call rate to the policy repo rate. * "With large surplus liquidity in the system, it has recently moved below the policy rate, but it continuesto remain within the corridor," Governor Sanjay Malhotra said. * The rupee rate is market-determined. Historically, ithas strengthened in the last quarter of a financial year. * Inflation is currently benign and underlying inflation isexpected to remain low going forward. * Downside risks (to the economy) stem from geopoliticaltensions, geoeconomic uncertainties, and climate-related events. * The Indian economy remains resilient, with growth drivenby both consumption and investment. * Gross foreign direct investment remains strong, though anincrease in overseas direct investment and repatriation areimpacting net FDI.