Market Eyes RBI Stance as Governor Meets Minister Amid Rising Crude Prices

In a strategic discussion on Monday, RBI Governor Sanjay Malhotra and Finance Minister Nirmala Sitharaman exchanged views on the country’s monetary outlook ahead of the October Monetary Policy Committee meeting. The dialogue took place against a backdrop of strong domestic growth – 7.8% in the first quarter – but persistent global uncertainty. Prices of crude oil have climbed past the $100 per barrel mark, a development that the SBI Econ‑Rap report links to heightened inflation risks. The report highlights that the case for raising the repo rate has grown considerably over the past month, differing from the Federal Reserve’s path and reflecting India’s unique exposure to oil price volatility. Analysts expect the MPC’s decision in early October to shape market expectations, with investors keen to see if the RBI will extend its rate‑hold strategy or adopt a more restrictive policy to contain price pressures.