Market Chatter: Premature to Talk About Interest Rate Hikes: RBI Governor
The Reserve Bank of India (RBI) is not considering raising interest rates at the moment, Governor Sanjay Malhotra said in an interview with news channel ET Now on Wednesday, adding it was "premature" to discuss the same.His comments come amid market expectations of monetary policy tightening as rising oil prices and global uncertainties continue to add pressure on inflation and the Indian economy. Earlier in the month, the RBI's Monetary Policy Committee had kept the benchmark interest rate unchanged at 5.25% and retained its policy stance as neutral.Malhotra said the RBI was "cautious" on inflation and growth and is keenly watching whether higher oil prices are affecting the prices of other goods and services across the economy. According to him, such broader inflationary pressure has not appeared so far.The central bank would continue to closely monitor inflation and global developments before making any decision on a rate hike, he said.(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)