RBI cools rate-hike expectations as Governor Sanjay Malhotra says it is too early to discuss a new tightening cycle

🏦 RBI Governor Sanjay Malhotra said it is premature to talk about rate hikes at this stage, while India’s central bank continues to maintain a neutral policy stance.
📉 The message helps ease concerns that the RBI could shift quickly toward tighter policy, especially as markets remain focused on oil-price risks and a stronger US dollar.
🛢️ The RBI is still closely watching crude oil prices and the monsoon season, two key factors that could directly affect inflation in India if conditions turn unfavorable.
📌 Overall, the remarks carry a mildly dovish tone in the short term, supporting sentiment toward bonds and risk assets, but they do not fully remove inflation risks if external pressure returns.
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