RBI tightening will continue on schedule

The RBI’s out-of-cycle meeting today concluded with no decision on interest rates. That’s no surprise – it was called for administrative reasons, rather than as a response to changing economic conditions. We believe that further tightening will still be forthcoming at the next scheduled meeting in early December and again in early 2023. That’s likely to be it though, as inflation should soon be dropping back and headwinds to the economy will be growing.