![\"Premature](\"https:\/\/static.toiimg.com\/thumb\/msid-131981471,imgsize-1075259,width-400,height-225,resizemode-4\/rbi-governor-sanjay-malhotra.jpg\")
<\/div>\n<\/div>\n<\/div>\n<\/section>\n<\/div><\/div>\n<\/div>\nMUMBAI: RBI governor Sanjay Malhotra on Monday said it is \u201cpremature\u201d to talk about an interest rate hike, pushing back against market expectations that had begun pricing in tighter monetary policy. He emphasised that the central bank has made no such signal and remains firmly data-dependent amid persistent global uncertainty.In an interview with ET Now, Malhotra said RBI\u2019s current stance should not be interpreted as a precursor to higher rates. \u201cIf we intended to signal a hike, we would have shifted the stance from neutral to restrictive,\u201d he said, adding that given elevated uncertainty, \u201cit is premature to discuss rate hikes.\u201dThe governor noted that easing tensions in West Asia have brought some relief to the global economy, particularly through lower crude oil prices. This, he said, is supportive of both growth and inflation moderation for India, which has strong economic linkages with the region.<\/p>\n However, he cautioned that the situation remains fragile. \u201cSupply restoration will take time, inventories need rebuilding, and demand may return,\u201d he said, adding that the RBI is in a \u201cwait-and-watch mode\u201d as uncertainties persist. On inflation, Malhotra said there are no clear signs yet of second-round effects taking hold. Headline inflation remains below the RBI\u2019s 4% target, largely driven by food prices, while core inflation is subdued at around 2.4%.Wholesale price inflation has risen, mainly due to fuel, but the central bank is closely tracking whether these pressures spread more broadly. \u201cIf price increases generalise and persist, then policy action would be warranted. At present, we do not see such generalisation,\u201d he said.Reiterating the RBI\u2019s stance on the currency, Malhotra said the rupee is market-determined, with intervention limited to curbing excessive volatility. He noted that recent measures have helped ensure orderly market movements and reduced speculative pressures. On capital flows, he said initiatives such as FCNR deposits and external commercial borrowings (ECBs) have seen encouraging initial responses, with expectations of continued resilience in the external sector.Malhotra also outlined RBI\u2019s ongoing push to deepen digital financial infrastructure. He said the central bank is working towards making the BHIM app interoperable with digital rupee wallets, a move aimed at improving user convenience and accelerating adoption of the central bank digital currency (CBDC).On technology, he noted that the RBI is actively exploring the use of AI to enhance regulatory oversight, improve efficiency, and strengthen financial stability frameworks. \u201cWe are using AI in our day-to-day work. We have our language model ChiRAG (Chat Interface with Retrieval Augmented Generation)\u201d. ChiRAG is a tool to help RBI staff retrieve, synthesise, and analyse information from the central bank\u2019s internal data and documents.<\/div>\n![\"RBI\"](\"https:\/\/static.toiimg.com\/photo\/msid-131981484\/rbi.jpg\" "\\"\\"")
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