RBI’s success on dollar flows raises stakes in inflation fight & clamour for rate hike
- Posted on October 1, 2026
- By Business News Today
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- 1 min read
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RBI’s success on dollar flows raises stakes in inflation fight & clamour for rate hike
Indias record $133 billion diaspora inflow has flooded banks with liquidity, pushing overnight rates below the RBIs 5.25% policy rate. The Reserve Bank has already drained more than ₹1 trillion as food and oil prices fuel inflation concerns. Markets now expect further liquidity measures and are increasingly pricing in a possible RBI interest-rate hike.
