RBI to Reassess Growth and Inflation Outlook
The Reserve Bank of India's (RBI) Monetary Policy Committee (MPC) will reassess the growth and inflation outlook at its October meeting due to rising crude oil prices and the ongoing West Asia crisis, Governor Sanjay Malhotra said in an interview with CNBC-TV18.
Impact of Rising Crude Prices
Malhotra noted that the impact of higher crude prices on inflation would depend on the extent to which the increase is passed through to consumers. The Indian basket of crude oil averaged $82 per barrel in July and $90 per barrel in August.
FCNR(B) Deposit Facility
The RBI governor also discussed the recent FCNR(B) deposit facility, which saw inflows of $127.22 billion. Nearly half of the deposits mobilised were for a five‑year tenor, reflecting strong investor confidence in India's macro‑economic fundamentals.
Future Developments
The next MPC meeting is scheduled for October 5‑7, 2026. Malhotra emphasized that the RBI would continue to monitor inflation expectations and the overall economic situation.
Liquidity Management
The governor also mentioned that the RBI has enough tools to manage the current surplus liquidity in the banking system and is prepared to use them as needed.