RBI Governor: AI Asset Valuations Overheated, but Cyber Risk Is the Bigger Threat

What happened

On October 7, the Reserve Bank of India announced its policy decision: the repo rate was raised 25 basis points to 5.5%, the stance shifted from “neutral” to “calibrated tightening,” and FY27 GDP growth was revised up to 7.1% with CPI inflation seen at 5.2%.

In the Q&A that followed (per ANI), Governor Sanjay Malhotra said overheated AI asset valuations are one of the risks facing the global economy — but emphasized that AI-driven cyber risk is the threat central banks should watch more closely. It is the first time a major central bank has put the AI asset bubble and AI cyber risk side by side in formal policy language.

Key facts

1. When: : Oct 7, 2026, in the post-policy press Q&A
2. Who: : RBI Governor Sanjay Malhotra
3. Core message: : overheated AI valuations are a global risk; AI cyber risk is the bigger threat for central banks
4. Same meeting: : repo rate up 25bp to 5.5%, stance shifted to “calibrated tightening”
5. Outlook: : FY27 GDP growth raised to 7.1%, CPI inflation at 5.2%