RBI MPC speech: FDI, forex reserves, credit growth — what Governor Sanjay Malhotra said on global financials
Mint 1 hr ago·7 Oct 2026, 5:49 am
Reserve Bank of India Governor Sanjay Malhotra addressed the state of the global financial system, highlighting a mix of positive and concerning trends. He noted that Foreign Portfolio Investment (FPI) outflows have reached $10.3 billion, driven by global financial risks. However, the economy remains resilient, with Foreign Direct Investment (FDI) inflows showing strength and foreign exchange reserves standing at a robust $734.6 billion.
This data suggests that while external headwinds exist, India's financial buffers are deep enough to absorb shocks. Strong FDI indicates long-term confidence in the country's growth story, while high reserves provide a safety net against currency volatility. For investors, this paints a picture of a stable macro environment capable of weathering global turbulence.
Looking ahead, market participants should monitor the pace of FPI flows and how the RBI manages liquidity to support credit growth. The 18.1% rise in bank credit indicates strong domestic demand, but sustained FDI inflows will be key to maintaining a stable rupee and supporting equity markets in the coming quarters.
Excerpt from Mint
Governor Sanjay Malhotra highlighted stronger FDI inflows, $734.6 billion forex reserves and 18.1% bank credit growth, while noting $10.3 billion FPI outflows amid global financial risks. The Reserve Bank of India (RBI) raised the repo rate by 25 basis points to 5.5% on Wednesday and changed its monetary policy stance…Read the original at Mint
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- Category: Economy.
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