The Reserve Bank of India (RBI) Governor Sanjay Malhotra on the possibilites of repo rate hike in the coming months said it was premature to discuss interest rates.
In an interview with ET Now, Malhotra said, “If we wanted to prepare the market for rate hikes, we would have changed stance from neutral to restrictive.”
Pushing back against expectations for future interest-rate increases, Governor said it was premature to discuss the policy outlook given ongoing geopolitical uncertainties.
He further said the RBI neither targets a specific rupee level nor operates a trading band for the currency. “We do not pursue or target any particular price level or even a band. The rupee has to be determined by market forces,” he said.
“This is not merely a stated position but the RBI’s actual operating framework. This is not only our stated policy, this is the actual policy,” he said, underscoring the central bank’s commitment to a market-determined exchange rate.
He further clarified that a flexible exchange-rate regime does not imply the absence of RBI intervention.
“The central bank continues to intervene in the foreign exchange market when required to ensure orderly market functioning and prevent excessive volatility,” he said.
RBI Governor further addressed the consumer protection concerns and said the consumer protection remains the guiding principle of the Reserve Bank of India’s regulatory framework.
Every policy, regulation and supervisory measure undertaken by the central bank is ultimately aimed at safeguarding customer interests and strengthening trust in the financial system, he said.
“Consumers remain the focal point of the RBI’s decision-making process. Consumer is the center of whatever we do. End of the day, it is the interest of the consumer which is paramount,” he said.
“Whether a regulation appears institution-centric or consumer-centric, the ultimate objective is to serve and protect the consumer. Consumer is king. This is a service industry, and the consumer must remain at the center stage of whatever a regulator or regulated entity does,” he said.
‘Too Early…’: RBI Governor On Rate Hike, Says ‘Consumer Remains King’
