Archive · 11 Sep 2026
RBI Governor Flags Two-Sided Inflation Risks Ahead of October Review
India’s central bank is watching prices carefully.
Governor Sanjay Malhotra said inflation could move either higher or lower.
The bank will study the situation again when its policy committee meets in October.
Some food prices, including sugar and onions, have risen.
Higher oil prices could also make things more expensive.
The government has absorbed some of the oil-price increase, which has helped the economy.
Global interest rates and bond yields are rising too, and this can affect India.
The central bank will consider all these factors before making its next assessment.
RBI Governor Sanjay Malhotra said inflation risks currently exist on both the upside and downside.
The Monetary Policy Committee will reassess growth-inflation dynamics at its October 5-7 meeting.
Core inflation excluding precious metals was 2.3% at the MPC’s previous meeting, with limited signs of persistent inflation expectations.
Higher food prices and crude oil costs remain concerns, although the government has cushioned much of the energy shock.
Rising global bond yields, including a US 10-year yield nearing 5%, could affect India’s growth, inflation and interest rates.
- Who
- Reserve Bank of India Governor Sanjay Malhotra and the Monetary Policy Committee.
- What
- The RBI is monitoring two-sided inflation risks and will reassess the growth-inflation outlook.
- When
- The MPC is scheduled to meet from October 5 to 7.
- Where
- The assessment concerns India and is influenced partly by global financial conditions.
- Why
- Food prices, crude oil, underlying inflation and rising global bond yields could affect India’s inflation, growth and interest rates.
- Governor
- Sanjay Malhotra
- Next MPC meeting
- October 5-7
- Core inflation
- 2.3%, excluding precious metals, at the previous MPC meeting
- Food-price concerns
- Sugar and onions were elevated, with deficient rainfall cited as a factor
- Indian crude basket
- The average rose from 82 in July to 90 in August, according to the interview
- US 10-year yield
- Approaching 5%
- Global bond yields
- G7 yields were described as being at multi-decade highs