RBI Governor: Inflation control remains foremost priority amidst capital inflows
RBI Governor Sanjay Malhotra affirmed that inflation control remains the central bank's primary mandate, while also considering growth risks. He noted a strong investor response to recent measures aimed at attracting foreign capital, with nearly $32 billion mobilized, primarily through FCNR(B) deposits and government securities. Malhotra stated that these inflows have strengthened India's external position amid global uncertainties and that the rupee is not overvalued, with RBI intervention focused on curbing excessive volatility rather than targeting a specific exchange rate.
Key Points
- Inflation control is the Reserve Bank of India's (RBI) foremost priority.
- India has attracted significant foreign capital, totaling nearly $32 billion, through recent RBI measures.
- The rupee is considered not overvalued, and RBI intervention aims to curb excessive volatility.
- The Monetary Policy Committee will maintain a data-dependent approach, balancing inflation and growth.
Exam Facts
- Sanjay Malhotra is the RBI Governor.
- Nearly $32 billion in foreign capital was mobilized, largely through Foreign Currency Non-Resident (Bank), or FCNR(B), deposits.
- Government securities attracted more than $7 billion in foreign inflows.
- The Monetary Policy Committee (MPC) will adopt a data-dependent approach.
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