RBI may look through price worries, high credit growth

RBI governor Sanjay Malhotra indicated no immediate policy reaction to current inflation, describing price pressures as contained and attributing them to supply-side factors.

Growth remains resilient, supported by domestic demand and investment, with credit expanding briskly at close to 18% overall.

MSME and gold loan segments are growing at 24-25%, but RBI does not see immediate distress unlike past microfinance excesses.

RBI focuses on inflation composition, not just the headline number, with CPI projected at about 5.1% this year.