We agree with financial markets and the analyst consensus that policy rates will be left on hold at the conclusion of the RBI’s upcoming MPC meeting on 4th June, particularly given that the worst of the current virus wave now appears to be over. But any recovery will remain fragile, especially while the vaccine rollout remains stuck in first gear. So even as some EM central banks look to begin normalising policy later this year, the RBI is likely to keep rates unchanged for a long while yet.
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