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RBI Governor Reaffirms No Rupee Target, Vows Action Only Against Excessive Swings

Sanjay Malhotra says the policy stance is neutral with inflation projected toward a 3–4% range.

Overview

  • Malhotra said the central bank has no red line near 90–91 per dollar and does not defend any specific currency level.
  • He reiterated that interventions are aimed solely at curbing abnormal volatility to maintain orderly market conditions.
  • India’s buffers were described as strong, with about $690 billion in foreign exchange reserves and a comfortable external position.
  • The governor cited long-term capital inflows, including roughly $15 billion committed or invested in private financial entities in 2025.
  • He urged preserving central bank independence as global peers issued a statement backing Jerome Powell following DOJ grand jury subpoenas.