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Turning the corner in 2020

After a dreadful 2019, a combination of policy loosening and more decisive measures to deal with problems in the shadow banking sector will push economic growth in India back up to a healthier pace in 2020. And with core inflation set to rise, we think markets are wrong to assume that interest rates will stay on hold for the next two years and see the RBI switching to tightening mode much sooner, possibly before the end of 2020.

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