RBI considers rate hike as rupee slumps: reports

admin — Thu, 21 May 2026 04:55:00 +0000

The Reserve Bank of India is considering all ⁠its available options to stabilise the rupee. Image for representation
| Photo Credit: Reuters

The Reserve Bank of ‌India (RBI) is considering all ⁠its available options to stabilise the rupee, including an ‌interest ‌rate ⁠hike, Bloomberg ⁠News reported on Thursday (May 21, 2026), citing people familiar ‌with the matter.

Top officials at the ‌RBI, including Governor Sanjay Malhotra, have ⁠held a series of ‌internal meetings to discuss the course of action ‌after the plunge in the rupee, ⁠the report said.

This comes after the rupee made a new low of 96.95 on Wednesday (May 20, 2026), and later closed at 96.86, which was also a new closing low as demand for dollars continued with the dollar index higher and crude oil prices remaining on the higher side.

The rupee recovered 41 paise from its all-time closing low to 96.45 against the U.S. dollar in early trade on Thursday (May 21), after U.S. President Donald Trump indicated that negotiations with Iran were entering the final stages.

Investors are still gauging the geopolitical risk and oil price sensitivity in the background with any flare-up in West Asia tensions or spikes in crude, forex traders said.

At the interbank foreign exchange market, the rupee opened at 96.25 against the U.S. dollar, then touched 96.45 in early trade, up 41 paise from its all-time lifetime low of 96.86 against the U.S. dollar on Wednesday.

Published – May 21, 2026 10:25 am IST

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RBI Governor says no interest rate cuts for now

admin — Fri, 20 Oct 2023 17:22:24 +0000

RBI Governor Shaktikanta Das delivers the plenary address at the ‘Kautilya Economic Conclave’, in New Delhi, Friday, Oct. 20, 2023.
| Photo Credit: PTI

Interest rates will remain high, and any change will depend on the way the world evolves, Reserve Bank of India Governor Shaktikanta Das said on Friday, highlighting fresh uncertainties that have emerged in the global economy in the fortnight since the latest Monetary Policy review.

Referring to the recent spurt in U.S. bond yields to a record high, combined with policy pronouncements from central banks with mixed data points from around the world, Mr. Das asserted that while central banks must remain agile to these developments, the first line of defence must be stock exchanges and financial institutions. Some uncertainties that already existed, have been exacerbated, he noted, like the rise in crude oil prices and the persistent volatility in financial markets.

Asked about the ‘higher for longer’ interest rate prospects at the Kautilya Economic Conclave, the Governor said central banks will have to be extra vigilant about the growth-inflation dynamics while keeping a hawk’s eye on price rise.

Editorial | Tightrope walk: On RBI holding rates

“How these economies are going to play out next year in terms of their growth, because if growth slows, that also creates other challenges for financial stability,” said Mr. Das. “So I would not venture to say how long these interest rates will be high, but I’m not giving a forward guidance,” he noted.

Interest rate cuts in India, he emphasised, are not on the agenda at the moment. “Interest rates will remain high, how long they will remain high, I think only time and the way the world is evolving, will tell,” Mr. Das underlined.

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RBI considers rate hike as rupee slumps: reports

RBI Governor says no interest rate cuts for now