At the SBI Banking and Economics Conclave, RBI deputy governor Poonam Gupta told attendees that India’s core inflation will stay inside the 4 percent band, even as oil prices spiked and U.S. tariffs rose.
She pointed out that advanced economies are hovering near double their targets— the U.S. economy is close to 4 percent— whereas India’s CPI has remained anchored around 4 percent.
India has weathered a string of shocks: El Niño‑driven rains, a surge in capital outflows linked to the global AI boom, and an energy shock that saw imports climb but supply rationing stay low.
The central bank also highlighted that a recently launched special scheme has already pulled in more than $133 billion from non‑resident deposits, setting the stage for a potential rupee rally.
The RBI will keep a close eye on price pressures ahead of its next policy meeting on August 15, when it is likely to maintain the repo rate unchanged.