RBI MPC minutes: Global investors nervous, financial markets remain volatile, says Governor Malhotra

RBI MPC minutes: Global investors nervous, financial markets remain volatile, says Governor Malhotra

• Global investors remain nervous amid volatile financial markets
• RBI kept policy rate unchanged at 5.25% in February meeting
• India's growth outlook remains robust with benign inflation

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Reserve Bank of India Governor Sanjay Malhotra said global investors are nervous and financial markets remain volatile at the monetary policy meeting held earlier this month, showed minutes of the February 4-6 meeting of the RBI's Monetary Policy Committee.

"Despite escalating geopolitical tensions and increasing trade frictions posing huge challenges, global growth, supported by a surge in technology-related investments, conducive fiscal and monetary policies, and accommodative financial conditions, is expected to be marginally higher in 2026. Inflation outcomes may remain divergent across countries; accordingly, central banks are likely to tread dissimilar policy paths while approaching the end of their easing cycles. In the backdrop of large fiscal stimulus and geopolitical uncertainty, global investor sentiments are nervous and financial markets remain volatile," said Malhotra.

"Global growth expected to be marginally higher in 2026. Given present state of economy and its outlook, buoyant growth and benign inflation, the current policy rate is appropriate," said Malhotra.

On February 6, central bank's policy rate was kept unchanged at 5.25% and it was decided unanimously by the MPC.

Growth-supportive measures in Union Budget will boost growth and US, EU trade deals have improved external sector outlook, Malhotra added.

India is in similar or tad better position than last policy, Malhotra said.

RBI Deputy Governor Poonam Gupta said, "GDP growth is turning out quite robust, momentum to stay in FY27. Inflation is likely to stay benign across sectors, going into FY27."

"Risk to inflation from external sources perceived to be limited. No risk of buoyant economic activity resulting in higher CPI is seen. Future course of policy action ought to be data dependent," she added.

Ram Singh, an external MPC member, said domestic drivers of growth continue to be robust.

"Trade deals to strengthen exports, bring in higher investments. Growth looking up while inflation outlook remains broadly unchanged," said Singh.