RBI hopeful of healthy dollar inflows and raises crude oil assumption from $85 to $95 per barrel – Firstpost

The Reserve Bank of India (RBI) remains optimistic about steady foreign currency inflows into the economy, Governor Sanjay Malhotra said, adding that the central bank is not working with any specific target for dollar flows.

“We are hopeful of reasonable and healthy dollar inflows. We are not targeting any particular number… We expect a reasonable quantum of flows through ECBs and other measures announced today,” Malhotra said.

External Commercial Borrowings (ECBs) and other recently announced measures are expected to support foreign exchange inflows amid evolving global economic conditions.

The RBI Governor also said the central bank has revised its crude oil price assumption to $95 per barrel, compared with the earlier estimate of $85 per barrel.
The upward revision comes amid concerns over global oil market volatility and its possible impact on inflation, trade balances, and economic outlook.

The Reserve Bank of India (RBI) on Friday kept the repo rate unchanged at 5.25 per cent, in line with market expectations. The decision was taken unanimously after the six-member Monetary Policy Committee (MPC) held deliberations for two days.

At the beginning of his address, RBI Governor Sanjay Malhotra said India remains confident of withstanding geopolitical challenges even as the global economic outlook remains clouded amid the ongoing Iran war.

Malhotra also flagged weather-related risks, saying a weak monsoon could impact both growth and inflation. However, he added that adequate food stocks provide comfort against potential supply-side pressures.