A man stands in front of the Reserve Bank of India (RBI) logo inside its headquarters in Mumbai, India, February 6, 2026. REUTERS
MUMBAI, March 2 (Reuters) – Interest rates in India will remain “around this level or lower” for a long time, barring any shocks, the country’s central bank governor told the Economic Times newspaper in an interview published on Monday.
Here are some of his key comments:
- The Reserve Bank of India’s effort is to align the weighted average call rate to the policy repo rate.
- “With large surplus liquidity in the system, it (call rate) has recently moved below the policy rate, but it continues to remain within the corridor,” Governor Sanjay Malhotra said.
- The rupee rate is market-determined. Historically, it has strengthened in the last quarter of a financial year.
- Inflation is currently benign and underlying inflation is expected to remain low going forward.
- Downside risks (to the economy) stem from geopolitical tensions, geoeconomic uncertainties, and climate-related events.
- The Indian economy remains resilient, with growth driven by both consumption and investment.
- Gross foreign direct investment remains strong, though an increase in overseas direct investment and repatriation are impacting net FDI.
Reporting by Ira Dugal; Editing by Sonia Cheema
