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Original headline: RBI does not target any price or level for rupee , says Governor Sanjay Malhotra
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- RBI does not target any price or level for rupee, says Governor Sanjay Malhotra
RBI Governor Sanjay Malhotra said at the NDTV World Summit 2026 in New Delhi that the central bank does not target any price or level for the rupee, but will continue taking necessary measures to curb speculation and excessive volatility in the forex market. He said geopolitical tensions, supply chain disruptions, the West Asia conflict and trade uncertainties have made central banks' job harder, while the IMF projects global growth at 3.1% this year. India's inflation has risen steadily, mainly due to supply-side pressures, to 5.5%, and the RBI has raised its policy repo rate by 25 basis points. Malhotra stressed that price stability is the top priority, alongside financial stability.
- RBI does not target any price or level for rupee , says Governor Sanjay Malhotra
RBI Governor Sanjay Malhotra, speaking at the NDTV World Summit 2026 in New Delhi, said the central bank does not target any price or level for the rupee but will curb speculation and excessive volatility to keep forex markets orderly. He said geopolitical tensions, supply chain disruptions, the West Asia conflict and trade uncertainty have made central banking more challenging, with global inflation elevated and the IMF projecting global growth of 3.1% this year. Most economies have raised policy rates to fight inflation, except a few, including Japan and Sweden, where inflation remains relatively low. In India, inflation has risen steadily since February, largely due to supply-side pressures, reaching 5.5%, and the RBI has raised its policy repo rate by 25 basis points. Malhotra stressed that price stability is the top goal, alongside financial stability.
- RBI does not target any price or level for rupee , says Governor Sanjay Malhotra
RBI Governor Sanjay Malhotra said the central bank does not target any price or level for the rupee, but will keep taking necessary measures to curb speculation and excessive volatility to ensure orderly forex markets. He said geopolitical tensions, supply chain disruptions, the West Asia conflict and trade uncertainty have made central banking more challenging, with global inflation elevated and growth lower, projected at 3.1% this year by the IMF. Most economies have raised policy rates to fight inflation, except a few including Japan and Sweden, where inflation remains relatively low. On India, he said inflation has risen steadily on supply-side pressures to 5.5%, and the RBI has raised the policy repo rate by 25 basis points in response. Malhotra stressed that price stability is the primary goal, alongside financial stability.
- RBI does not target any price or level for rupee , says Governor Sanjay Malhotra
- RBI MPC minutes : Economists maintain back - to - back repo rate hike stance
Economists on Thursday expect the RBI to keep hiking rates back-to-back, as the October MPC minutes signalled a more hawkish tone that leans toward future risks and tightening. SBI Research still expects a 50 bps hike in December, either as a straight 50 bps repo increase or as a 25 bps repo hike combined with an asymmetric widening of the LAF corridor. Dr Soumya Kanti Ghosh of SBI warned that broadening inflation and persistent rupee weakness call for close RBI monitoring, while Radhika Rao of DBS Bank said the door stays open for a back-to-back hike in December as inflation is set to reach 6 per cent in CY Q4. The rupee has strengthened about 1.5 per cent against the USD this month on forex regulatory measures and IPO inflows, though bond yields remain high and may come under pressure again as oil supply fears return.
- Expect 10yr benchmark bond yield to trade in a range of 6.90% to 7.25% over the course of the next one month
Puneet Pal of PGIM India Mutual Fund expects yields to keep trending higher as the RBI starts monetary tightening from its June policy meeting, with policy rates possibly rising 50-75 bps by the end of 2026. Money market yields up to one year, near 8%, are viewed as attractive for short-term investors. During the week, government bond yields rose 3-6 bps as the INR hit a record low of 96.83/USD and the RBI announced a USD 5bn buy/sell swap. Analysts expect the balance of payments deficit to be around USD 50bn, so measures to attract dollar inflows may soon follow, though he sees no comparison with 2013 since inflation is below 4%.
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