More Stories

Informist, Wednesday, Oct. 7, 2026

 

Please click here to read all liners published on this story

--RBI Malhotra: MPC used stance for policy guidance going forward 
--RBI Malhotra: MPC does not vote on stance change 
--RBI Malhotra: Change in stance suggests no rate cuts in near term
--RBI Malhotra: Quantum of future rate hikes relies on CPI, GDP dynamics 
--RBI Malhotra: Discussed all possibilities on rate

 

NEW DELHI – Ruling out any possibility of a reduction in key policy rates anytime soon, Reserve Bank of India Governor Sanjay Malhotra Wednesday said that the Monetary Policy Committee is contemplating either a pause or a rate hike in the near term. "How deep the rate hike or shallow the rate hike will be, will depend on the evolving macroeconomic conditions and the growth-inflation dynamics," he said in a press conference after the Monetary Policy Committee's fourth bi-monthly meeting for the financial year 2026-27 (Apr-Mar).

 

Earlier in the day, the Monetary Policy Committee raised the policy repo rate for the first time in over three years by 25 basis points to 5.50%. The Monetary Policy Committee also decided to change the stance to "calibrated tightening". "It underscored that given the current conditions, rate cuts are off the table in the near term and policy action ahead can only be a rate hike or a pause, depending on the evolving conditions and the outlook," the governor said in his statement detailing the decision.

 

On being asked whether the Monetary Policy Committee had considered a higher rate hike, Malhotra said, "We discussed all possibilities and thereafter took a view as to what will be the appropriate monetary policy decision." He added that, "Whether more (rate hikes)...that is a call that will be taken, as we have said going forward. It will be up to the MPC to take a view on how it looks forward." The governor also clarified that the Monetary Policy Committee members do not vote on the policy stance but give their view.

 

Malhotra said that while headline inflation is the target given by the government, that is not the only thing to be seen. The Monetary Policy Committee further observed that in the light of available data, it is clear that inflation and its outlook are not benign as they were last year, with headline CPI inflation expected to average almost 5.8% in the next three quarters and core inflation projected at 4.4% this financial year. "In this milieu, recalibrating the policy rate is imperative," Malhotra said in his statement.  End

 

US$1 = INR 96.75

 

Reported by Sagar Sen

Edited by Himanshi Gupta

 

For users of real-time market data terminals, Informist news is available exclusively on the NSE Cogencis WorkStation.

 

Cogencis news is now Informist news. This follows the acquisition of Cogencis Information Services Ltd. by NSE Data & Analytics Ltd., a 100% subsidiary of the National Stock Exchange of India Ltd. As a part of the transaction, the news department of Cogencis has been sold to Informist Media Pvt. Ltd.

 

Informist Media Tel +91 (11) 4220-1000

Send comments to feedback@informistmedia.com

 

© Informist Media Pvt. Ltd. 2026. All rights reserved.