Mumbai, April 8 -- India's rate-setting panel kept the policy rate unchanged and Reserve Bank of India governor Sanjay Malhotra indicated that benchmark rates could remain low for an extended period despite the global uncertainty triggered by the West Asia war.

"We are in a neutral state. Possibility, either way, cannot be ruled out. it is quite possible that even in the short to medium term, we will continue to have low rates," Malhotra said during the monetary policy announcement on Wednesday.

RBI's Monetary Policy Committee (MPC) held the repo rate steady at 5.25% and retained the neutral stance, in line with expectations. A Mint poll of 10 economists and market participants expected the MPC to hold rates while signalling a more caut...