RBI Governor Malhotra sees falling inflation prompting policy rate change
Business
Reserve Bank of India Governor Sanjay Malhotra said India's falling inflation could open the door for a policy rate change, but he's not rushing into it just yet.
At the August 2026 meeting, he pointed out that inflation has averaged 3.93% this year, but wants to see more stability before making any big moves.
RBI policy rate unchanged at 5.25%
Malhotra explained that recent price spikes mostly came from expensive food and fuel, not deeper economic issues.
He expects things to settle after a peak in the third quarter, with core inflation staying pretty steady.
Even with global hiccups and unpredictable weather, he remains upbeat about India's growth, still aiming for a solid 6.7% GDP rise by FY27.
The current policy rate sits at 5.25%, unchanged on 5 August.