Mumbai: Amid the ongoing global tariff war, RBI Governor Sanjay Malhotra on Wednesday said he is more worried about its impact on growth than inflation.
Malhotra said, RBI has reduced the growth forecast for FY26 by 20 bps to 6.5 per cent.
As far as the impact of US tariff on India, he said, “We have given our assessment as you can see, the growth rate, we have reduced by 20 basis points this year, primarily arising out of uncertainties.”
On the inflation front, he said, “it can actually move both ways, because of the surplus, because of the demand that is going to shrink as a result of the trade tariff friction. It may help on the inflation front”.
Besides, he said, crude prices have also gone down.
RBI, however, lowered retail inflation estimate to 4 per cent, 20 basis points lower than previous estimate for the current financial year. “More than inflation, we are concerned about its (tariff hike) impact on growth,” he said.