All eyes will be on the RBI's policy decision on Thursday, which has become less of a formality given the surge in food prices. We still think that the central bank will keep the repo rate on hold at 6.50%, but the hawkish rhetoric will be dialed up. Meanwhile, the latest fiscal data suggest that, so far at least, the government is delivering on its promise to significantly ramp up capital expenditure this year.
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