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Informist, Wednesday, Aug. 6, 2025

MUMBAI – Following are the highlights of comments by Reserve Bank of India Governor Sanjay Malhotra and other top central bank officials to the media on Wednesday at the conclusion of the Monetary Policy Committee's third bi-monthly meeting for 2025-26 (Apr-Mar):

SANJAY MALHOTRA

* On growth: Some global uncertainties already factored in
* Difficult to predict impact of tariffs on growth
* Do not have sufficient data to revise GDP forecast right now
* Will continue to monitor macroecon conditions
* To monitor macro-econ conditions on policy-to-policy basis
* Policy transmission still happening
* Will do what is required to support growth, price stability
* Don't see major impact unless there are retaliatory tariffs

* Repo rate kept stable as cuts frontloaded, transmission is on
* Uncertainties still continue, situation still evolving
* Food inflation deviation is 3%, less in headline inflation
* Will keep watching incoming data
* Impact of rate cuts on real econ will start to happen
* Rates have come down significantly faster
* We should be hesitant to extract signals out of micro data
* Housing credit doing well overall
* We should look at long term data for trends
* Overall housing credit growth very good

* Rate cut to translate into credit growth will take time
* Don't agree small home loans NPAs have risen
* Sharp rise in unsecured loans has been reduced
* No worry on NPA levels in banking sector
* MFI loans are important as they benefit 80 mln people
* Total financial fraud amounts have not risen on year
* 15 banks joined AI tool mule hunter
* Took various steps to support growth beyond monetary policy
* Hopeful of amicable solution to India-US trade talks
* Let us wait for two months and see how economy fares
* We will not be found wanting in doing whatever it takes
* Expect govt to take fiscal steps to contain crude oil fallout
* Don't see impact on inflation if crude oil import mix changes
* Taken several steps to contain increasing mule accounts, mis-selling
* Scope for improvement in dealing with mis-selling practice
* Our effort should be mis-selling doesn't happen
* Banks have sufficient funds to meet needs of economy
* Did not account for CPI weightage change in CPI FY27 forecast
* Inflation can be downwards or upwards from projections
* Projections are difficult things to do
* Won't venture to say inflation can't be lower than forecast
* Both core and headline inflation important
* Higher volatility in food prices, can be transient
* Needs analysis is needed when banks sell financial products 
* Confident of meeting external sector needs with FX reserves
* Too early to say on impact of tariffs on foreign flows
* Aspirational growth rate is more than 6.5%
* Contributing 18% to global growth, more than US
* No proposal for any change on capital acct convertibility
* Some volatility in rupee expected in uncertain times
* Malhotra doesn't answer query on action against IndusInd owners, board
* Volatility in rupee much less compared to other currencies
* Target is certainly headline inflation

* Will release discussion paper on flexible inflation targeting
* Will seek public views on flexible inflation target framework

POONAM GUPTA
* Tariff impact on India inflation to be very limited

End

Compiled by Vinod Bhovad

Filed by Vandana Hingorani

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