85 breached
The Indian rupee has breached the significant psychological barrier of 85 against the US dollar, marking an all-time low amid a confluence of domestic and global pressures.
Inflation for October is likely to be higher than the 5.5 per cent recorded in September, warned the Reserve Bank of India Governor Shaktikanta Das.
Speaking at a media event, the Governor assured that the RBI is prepared to act with strength and agility, likening the Indian economy to a tiger for its resilience amid fluctuating global conditions.
Advertisement
He said the RBI remains committed to maintaining stability in the financial system.
Advertisement
Governor Das pointed to two major international events awaited by financial markets: the outcome of the US elections and announcements from China regarding fiscal policy support.
“The Indian economy and financial sector are well placed to handle any kind of spillovers from global events. Overall, India’s macroeconomy and macro-financial conditions are very resilient to spillovers from anywhere in the world,” he said.
He said the incoming data on economic growth is “mixed”, but the positive factors outweigh the negative ones.
“Data which is coming in is mixed but the positives outweigh the negatives and by and large underlying activities remain strong,” the governor said.
Das said the RBI tracks over 70 high-speed indicators to arrive at its estimates and described both the positive factors pushing the number and the negatives pulling it down.
On the recent actions against non-banking financial companies (NBFCs), he clarified that they reflect the central bank’s corrective approach rather than a punitive stance.
Out of 9,400 NBFCs in India, action was taken against only four, highlighting that the RBI’s restraint is greater than its interventions.
“Our effort has been far more consultative, with direct engagement, transparent communication, and measured action. It is not abrupt; it is not arbitrary,” he said.
“If compliance is 100 per cent, or near 100 per cent, and we are confident that the remaining corrective steps will be taken in the next few weeks or months, we will withdraw the restrictions.”
Advertisement
