Markets Overly Pessimistic On Rupee? RBI Gov Sanjay Malhotra’s Exclusive Interview | Moneycontrol

Core Development: Markets Overly Pessimistic On Rupee? RBI Gov Sanjay Malhotra’s Exclusive Interview | Moneycontrol

Market & Financial Impact: In an exclusive interview with Moneycontrol, RBI Governor Sanjay Malhotra says the central bank is determined to do whatever is necessary to ensure an orderly movement in the forex market, and that markets are overly pessimistic on the rupee. Moneycontrol’s Hamsini Karthik joins us to brief us on what the Governor said. The Governor clarified that the recent measures should not be read as curbs on capital flows. They are aimed at making sure the forex market serves genuine hedging needs rather than speculative bets. He also spoke on how monetary policy factors in financial stability, and how global developments, including interest rates, feed into the RBI’s policy decisions and its view of the neutral rate. On the broader picture, he said the RBI and the government have already taken steps to strengthen the balance of payments and will take more if required, while sounding optimistic about India’s macro story. Watch the full discussion for the key takeaways from the interview.

Actionable Insight: 🏛️ Policy & Macro: Interest rate, inflation, or regulatory changes affecting broad market valuations.