Overview
- Governor Sanjay Malhotra told ET Now on Wednesday that it is premature to discuss an interest-rate hike and that the RBI is in a wait-and-watch mode.
- The Monetary Policy Committee left the repo rate unchanged at 5.25% and kept a neutral stance at its June 3–5 meeting to preserve flexibility.
- Malhotra said the US‑Iran truce has reduced near-term upside risks to oil but called the ceasefire fragile and said supply restoration will take time.
- India’s cumulative monsoon rainfall was 43% below normal as of June 22, which could squeeze farm output, push up food prices, and weigh on rural demand if the shortfall persists.
- The RBI reiterated it will act to curb disorderly rupee moves, continues measures to boost foreign inflows, and hopes index inclusion would further support capital flows.