Mumbai, Jun 5 (PTI) RBI Governor Sanjay Malhotra on Friday underlined that the country's economic situation is "strong", and hoped for policy measures to yield higher capital inflows.

Addressing a press conference after the announcement of the monetary policy in which the RBI opted for a status quo on interest rates despite a 0.50 per cent increase in its inflation estimate to 5.1 per cent in FY27, Malhotra said the 4 per cent inflation target is not in abeyance.

"Overall, our economic situation is good and we are confident of turning this situation into an opportunity to further strengthen ourselves for the future," he said.

The RBI is not targeting a particular number on inflows through the measures announced by it and the government as well, Malhotra said, adding that it should lead to higher capital inflows.

Deputy Governor Poonam Gupta said RBI is expecting a healthy Balance of Payments (BoP) this year on the back of the recent initiatives.

There is no measure under consideration to restrict capital outflows, Malhotra said.

The Governor said the longevity of the supply shocks and its impact on prices is foremost concern of the RBI as of now, followed by the adverse impact to inflation from a likely deficient monsoon and El Nino condition.

The RBI will act by raising interest rates only if inflation gets persistent and generalised, he said.

On the proposal to launch polymer currency notes, the Governor said the proposal is under consideration and is currently at a preliminary stage. PTI MSU AA VHI DRR DRR DRR

Capital inflows and inflation outlook shape RBI policy, with rates unchanged and outflow restrictions ruled out. The Reserve Bank of India said India's economic situation remains strong and that recent policy measures are expected to support higher capital inflows and a healthy balance of payments. No target has been set for inflows, and no measure is under consideration to restrict capital outflows. The 4 per cent inflation target remains operative, while the central bank said it would raise rates only if inflation becomes persistent and generalised.