Members of the Reserve Bank's rate-setting panel voted for the status quo on interest rates earlier this month, citing uncertainties posed by the West Asia crisis and its impact on inflation, according to minutes of the Monetary Policy Committee (MPC) released on Wednesday. RBI Governor Sanjay Malhotra opined that the West Asia conflict poses challenges to the Indian economy through a number of channels exports, supply of critical commodities, elevated energy and other commodity prices, remittances, uncertainty, and subdued global demand. Overall, geopolitical uncertainties have intensified with the conflict widening its spread over the last month, he said. As a result, supply chain disruptions, which may take longer to subside fully and restore the logistics network, pose downside risks to the growth and upside risks to inflation. "As for monetary policy, this represents a supply shock. The underlying inflation pressures, minus the shock, are contained. "If the conflict remains .
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The Reserve Bank of India on Wednesday said "excessive speculation" on the rupee prompted surprise actions on the currency front in the last fortnight, but clarified that its measures will not remain forever. "In the last few weeks of March, we have witnessed heightened volatility in the foreign exchange market. These measures are reactions to the specific market movements. They are not signalling any structural changes. These are not measures going to remain forever," Malhotra said in a post-policy press conference. Deputy Governor T Rabi Sankar said there was an "artificial drying up" of supply in the market during those days, which led to the measures. The comments from the apex bank came for the first time after it capped NOP (net open positions)-rupee positions in the onshore deliverable market at USD 100 million and barred authorised dealers from offering non-deliverable forwards. The first measure helped the local currency to appreciate sharply, but gains were reversed withi
The central bank raised its inflation forecast to 4.6 per cent and flagged risks from West Asia tensions, while projecting GDP growth at 6.9 per cent for the current financial year
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The Reserve Bank did not come across any governance or conduct-related issues during supervisory inspection of HDFC Bank, Governor Sanjay Malhotra said on Wednesday. Responding to a question at the post-monetary policy press conference on sudden resignation of HDFC Bank Chairman Atanu Chakraborty and subsequent fall in its share price, Malhotra said RBI had also seen minutes of meetings of the lender, and the RBI did not find any thing of material concern. He said the RBI in its press release on March 19 too had said there were no material concerns on record as regards the bank's conduct or governance. "HDFC Bank is a Domestic Systemically Important Bank (D-SIB) with sound financials, professionally run board and competent management team. Basis our periodical assessment, there are no material concerns on record as regards its conduct or governance," the RBI said in its press release. Chakraborty had resigned on March 18. Malhotra also asserted that India's banking system is "very
On the growth side, the RBI has maintained a positive outlook, projecting gross domestic product (GDP) growth at 6.9 per cent for FY27
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In a post-monetary policy briefing, Malhotra said the central bank had observed heightened volatility in the foreign exchange market in recent weeks
RBI maintained that the weighted average call rate (WACR) is its operative rate, and it aims to keep it as close to the policy repo rate as possible
From the growth perspective, the governor's comment that " growth impulses remain strong, supported by robust private consumption and sustained investment demand" is significant and reassuring
Elevated crude oil prices could raise imported inflation and widen the current account deficit, he says
RBI flags rising risks from the West Asia conflict through energy prices and supply disruptions, but says India's economy is stronger and better placed to withstand shocks than before
RBI Governor Sanjay Malhotra said the West Asia conflict has raised risks to growth and inflation via oil, trade, and supply chains, but government steps on supply chains and exports may limit the imp
The RBI held the repo rate steady at 5.25% and kept its policy stance neutral. It said global tensions and higher energy prices remain key risks for inflation and economic growth