RBI Governor Shaktikanta Das reiterated this week that, despite the RBI keeping rates on hold this month, the easing cycle isn’t necessarily over. But the continued rise in vegetable prices over the past two weeks will keep the central bank on the sidelines in the near term. And further ahead stronger growth will push up core inflation, which could force the RBI to respond by hiking rates before the end of 2020. Meanwhile, the government’s shift towards more populist policy making – most recently with the passage of the controversial citizenship amendment bill – won’t derail a cyclical recovery in growth but could harm long-run prospects.
Become a client to read more
This is premium content that requires an active Capital Economics subscription to view.
Already have an account?
You may already have access to this premium content as part of a paid subscription.
Sign in to read the content in full or get details of how you can access it
Register for free
Sign up for a free account to gain:
- Unlock additional content
- Register for Capital Economics events
- Receive email updates and economist-curated newsletters
- Request a free trial of our services