RBI Governor Malhotra calls on Finance Minister Sitharaman
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Sanjay Malhotra, Governor-@RBI calls on @nsitharaman
Reserve Bank of India Governor Sanjay Malhotra held a meeting with Finance Minister Nirmala Sitharaman on Monday.
Key Takeaways
- RBI Governor Sanjay Malhotra met Finance Minister Nirmala Sitharaman on Monday, per a Finance Ministry post.
- The meeting came weeks after India recorded 7.8% GDP growth in Q1 of the current fiscal year.
- The next Monetary Policy Committee meeting is scheduled for October 5-7, 2026.
- RBI held the repo rate steady at 5.25% for a fourth consecutive meeting in August.
“Sanjay Malhotra, Governor-@RBI calls on @nsitharaman,” read a post from the Finance Ministry’s official account on X.
The discussion took place just weeks after India recorded an unprecedented 7.8 per cent GDP growth in the first quarter of the current financial year, notwithstanding global headwinds.
The next meeting of the Monetary Policy Committee (MPC), the RBI’s rate-setting body, is slated for October 5-7, 2026.
In August, the central bank held the short-term lending rate (repo) steady at 5.25 per cent for the fourth consecutive meeting.
An SBI research report released on Friday suggested that the Reserve Bank should raise the benchmark interest rate by 25 basis points next month, and once more in December, to counter persistent external shocks, elevated crude oil prices, and emerging signs of wider inflationary pressures.
“Just a month ago, rate hikes were hardly being discussed, and nearly everyone — if not all — anticipated a ‘prolonged pause.’ However, the scenario has shifted significantly since then,” the report stated.
SBI Ecowrap, authored by the bank’s Economic Research Department, said its recommendation for a rate hike does not depend on any upcoming US Federal Reserve decision, even as crude prices have recently surged past $100 per barrel against the backdrop of rising geopolitical tensions.
It further projected that crude prices could touch $123 per barrel within the next 15 days given the heightened geopolitical uncertainties.
If oil prices stay at elevated levels, inflation readings for October and November are likely to trend toward 6.5 per cent or above, it added.
Published on September 14, 2026
