<h1>India's Economic Recovery: RBI Holds Repo Rate at 4% Amid Inflation and Growth Challenges.</h1> The Governor's statement highlights the global economic challenges posed by the pandemic, with India showing a unique recovery trajectory supported by vaccinations and fiscal measures. The Monetary Policy Committee (MPC) decided to maintain the repo rate at 4% to support growth and manage inflation. Despite Omicron's impact, India's GDP is projected to grow, aided by government spending and robust exports. Inflation is expected to peak before moderating, with core inflation remaining high due to rising crude prices. The RBI focuses on financial stability, liquidity management, and enhancing infrastructure for MSMEs, while extending support for health and contact-intensive sectors.