Strong economic growth and surging inflation have prompted the RBI to kick-start its hiking cycle and we think the central bank will continue to frontload policy tightening. In all, we think the repo rate will rise by a bit more than the consensus expects over the next six to nine months. We also expect policymakers to step up financial repression so that policy tightening doesn’t significantly worsen the public debt dynamics.
Subscriber content
Read this in full, free
Start a free trial and use one of your 10 free starter credits to unlock this piece.