The Reserve Bank of India’s Monetary Policy Committee (RBI MPC) meeting commenced this morning, with Governor Sanjay Malhotra delivering the opening address. Malhotra highlighted that global growth and trade projections have been revised downwards, citing a fragile and highly fluid international backdrop.
This commentary sets the stage for the policy outcome expected at 10 AM today. Traders and investors are closely watching the RBI’s stance for cues on the domestic interest rate outlook.
Earlier in the day, the Indian rupee showed signs of continued weakness ahead of the policy announcement and the upcoming U.S. jobs data. The 1-month non-deliverable forward suggested an opening in the 85.86–85.90 range, compared to Thursday’s close at 85.79. The rupee had gained marginally by 0.1% in the previous session, finding support near the 86 mark.
Market participants believe that the RBI’s commentary today will help shape short-term expectations for rate movements amid external uncertainties.
