Why India will not follow Brazil in cutting rates

Given the sharp deterioration in the global economic outlook in the past couple of months, the Reserve Bank of India (RBI) will give serious consideration to downside risks to growth when it meets on Friday. Nonetheless, for several reasons we doubt India will follow Brazil’s lead in cutting interest rates. On the contrary, we still expect a further 25bp rate hike.

Subscriber content

Read this in full, free

Start a free trial and use one of your 10 free starter credits to unlock this piece.


Free. 10 articles. No card required.
By completing this form you are agreeing to our Terms and Conditions for the provision of a free trial of Capital Economics' services. We take your privacy seriously and will not share your details with others without your consent. By providing your details, including your email address, you are consenting to Capital Economics sending you macroeconomic commentary and analysis. You can unsubscribe at any time. See our Privacy Policy for more information.

Already a client or trialist? Log in to read this.