Mumbai, June 6 -- Reserve Bank of India (RBI) Governor Sanjay Malhotra has noted today that Indian economy is progressing well and broadly on expected lines on both inflation and growth fronts. Strong macroeconomic fundamentals and benign inflation outlook provide space to monetary policy to support growth, while remaining consistent with the goal of price stability. As global environment remains uncertain, it has become even more important to focus on domestic growth amidst sustained price stability. Accordingly, today's monetary policy actions should be seen as a step towards propelling growth to a higher aspirational trajectory.

The uncertainty around the global economic outlook has somewhat ebbed since the MPC met in April in the wak...