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| Home > News > Economy News |
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| Inflationary Pressure piling up, says RBI Governor |
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| (13:46, 22 Oct 2026) |
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| RBI governor Sanjay Malhotra observed in the most recent monetary policy meeting that the Indian economy has demonstrated considerable fortitude despite a challenging global environment. The growth forecast for the fiscal year 2026-27 is now estimated at 7.1 per cent, a 40 bps increase from the 6.7 per cent projection in August. Upward inflationary pressures are nonetheless emerging. Headline CPI is anticipated to reach the upper tolerance band in Q3 and to remain substantially above 5 per cent over the subsequent two quarters. Following a decision to implement a 25-bps increase in the policy rate, he indicated that the length and magnitude of the rate tightening cycle will be dependent on the realized growth-inflation dynamics and outlook, particularly concerning underlying inflation, the diffusion of price pressures, subsequent effects of the supply shock, and the influence of demand impulses. |
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