Reserve Bank Governor Sanjay Malhotra on Friday said the economy is in a better place than the sweet spot it was in two months back, which was described by him as the "goldilocks period".

"We are certainly in the same sweet spot, maybe even better because growth is looking up, growth is looking better, and inflation is the same," Malhotra said, replying to a specific question on the state of the economy and how it compares with what it was in December.

The final decision on the policy rate will be taken by the six-member monetary policy committee, but it hinted that there is a possibility that the repo rate will stay low in such circumstances.

"I do expect that the policy rates should continue to be at low levels for a long period of time. Whether they will go down even further," Malhotra told reporters.

The governor, however, refrained from stating whether the 5.25 per cent level is the terminal rate below which it will not go.

It can be noted that the RBI has cut the key rates by 1.25 per cent over 2025 as it saw some space getting created by inflation, its core objective.

Source:Ndtv