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Strength of PMIs unlikely to support another rate hike

The PMI surveys for April released this week suggest that India’s economy started Q2 on a strong footing. But they are at odds with several other indicators that point to an unspectacular near-term outlook. What's more, inflation is now within the RBI’s 2-6% target range and is likely to stay there for the foreseeable future, supporting our view that the tightening cycle has now come to an end.

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