Highlights of Comments by RBI Governor Sanjay Malhotra at Post-Policy Press Meet

Following are highlights of comments by RBI Governor Sanjay Malhotra at the post-monetary policy press conference:

• Neither dovish, nor hawkish, feel this is the right policy rate

• Our target is headline CPI, not Core

• Commitment to bring headline inflation in line with the target over medium term

• Continue to be guided by headline inflation

• Use core to understand what underlying inflation is

• Headline inflation can be volatile due to fuel and food inflation

• Will take action given outlook for growth-inflation dynamics

• On FCNR(B): Got robust flows, no proposal to close plan prematurely

• No proposal under consideration to close FX SWAP scheme prematurely

• Possibility of rupee strengthening going forward

• On rupee: Aim is ensure no self-fulfilling expectation gets built

• Rupee is undervalued in nominal or REER terms

• External position strong, to get further fortified

• Bulk deposit guidelines not because of NIMs, more for LCR rules

• Interest rate guidelines to standardise, rationalise rules across regulated entities

• Upcoming loan interest rate guidelines not a major change in requirement

• Liquidity not extra-ordinarily high, should get absorbed in medium term

• Liquidity surplus may be short-term, seen peaking around September

• Surplus liquidity will get absorbed in normal course

• No proposal as of now to change norms for top appointments at banks

• Premature to comment on MDR charges on some UPI transactions

• On MDR: Premature to talk as of now, but ultimately it is consumer who pays in a way

• Fan chart suggests possibility of growth being 7% or more  in FY27

• Interest rate transmission rate has moderated but more or less complete

• Still analysing norms on lenders to be allowed to lock phone bought on loan for missing EMIs

• No inflow target in mind for FCNR(B)

• Polymer notes target set as FY28-start

•  Will consider if there is need to recalibrate policy rates due to rise in core inflation

• On MPC stance: Will take decision policy by policy

• On swap window for ECBs: No proposal as of now, neither is there a need as flow robust

• Expect our external position to be "very good, excellent"

• On possible US tariff for Russia oil: Impact may not be as high as headline number may suggest

• On Upper Layer NBFCs: Those in list remain in list

• On any window dressing by banks: "Things are adequately well managed"

Other Officials:

• Murmu: Aiming transparency and level playing field via revised norms on deposits

• Gupta: Overall economy has become very resilient

• Gupta: Indicators show resilient rural economy

• Gupta: Rainfall deficiency matters less than it used to in the past

• Swaminathan on any window dressing by banks: "Things are adequately well managed"

• Jain on CBDC: Making good progress, use increasing

• Jain: Making good progress on CBDC, unified lending interface

• Jain On ULI progress: 12 states have digitised land records so far