Reserve Bank of India (RBI) Governor Sanjay Malhotra has stated that the central bank is keeping a close watch on supply shocks and their potential impact on inflation. Speaking on the matter, Malhotra emphasized that the RBI has maintained a neutral monetary policy stance since June 2025, which provides the flexibility to remain nimble in approach and respond judiciously to incoming data and information.
The governor's remarks come amid ongoing global economic uncertainties and domestic price pressures. The neutral stance allows the RBI to adjust its policy tools as needed without being tied to a specific direction, ensuring that it can act decisively to maintain price stability while supporting growth.
Malhotra reiterated that the central bank's primary objective remains to keep inflation within the target range, and any deviations due to supply-side factors will be carefully evaluated. The RBI continues to monitor both domestic and international developments to calibrate its policy responses effectively.
