RBI Governor Malhotra calls on Finance Minister Sitharaman

Reserve Bank of India Governor Sanjay Malhotra visited the office of Finance Minister Nirmala Sitharaman on Monday, a meeting confirmed through a post on the minister’s X account. The encounter follows India’s unprecedented 7.8% GDP expansion in the first quarter of the current financial year and occurs ahead of the Monetary Policy Committee’s scheduled meeting from October 5‑7, 2026.

The meeting was noted against a backdrop of a steady repo rate of 5.25%, unchanged for the fourth consecutive time in August. A research note from State Bank of India’s Economic Research Department recommends a 25‑basis‑point increase in the benchmark rate next month, with a further hike in December, citing persistent external shocks, crude oil prices above $100 a barrel and emerging inflationary trends. The report also projects crude prices could climb to $123 per barrel within the next fifteen days, potentially pushing October‑November inflation readings toward or above 6.5%.

Analysts view the dialogue between the RBI and the finance ministry as pivotal for shaping monetary policy that balances growth with price stability. Any rate adjustment will affect borrowers, businesses, and consumers across the economy, especially as higher oil costs feed into broader price pressures. The outcome of the upcoming MPC meeting will therefore be closely watched by market participants and policymakers alike.