RBI Stance on Interest Rates
In an interview with ET NOW on Wednesday, 24 June 2026, RBI Governor Sanjay Malhotra stated that it is premature to discuss any increase in policy interest rates. He emphasized that the central bank will remain data‑dependent and that any shift in policy stance would move from a neutral to a restrictive posture only if the RBI intends to prepare markets for tighter monetary conditions.
Inflation and External Risks
Governor Malhotra highlighted that global monetary and external uncertainties continue to be concerns. He noted that the easing of tensions in West Asia represents a significant positive development. While he has not observed broad‑based inflationary pressures, he mentioned that upside risks to inflation have eased, yet the second‑round effects of recent price shocks remain uncertain.
Exchange Rate Policy
On the Indian rupee, Malhotra reiterated that the RBI does not target any specific USD/INR exchange rate; the level should be determined by market forces. The USD/INR pair was 0.3% higher on Monday, trading near ₹95 per dollar. He explained that recent RBI measures had initially helped the rupee rise sharply, but it has since weakened in recent sessions.
Foreign‑Exchange Interventions
The Governor said RBI interventions in the foreign‑exchange market are aimed solely at ensuring orderly volatility. Measures introduced to attract dollar inflows have received an encouraging initial response, and sizeable capital inflows are expected. However, he cautioned that foreign inflows driven by capital markets could moderate as equity valuations undergo a modest pullback.
Overall Outlook
Overall, the RBI signals that while it is not considering immediate rate hikes, it remains vigilant to inflation dynamics, external risks, and currency stability, and will adjust policy stance as warranted by incoming data.