The Reserve Bank stepped up the pace of tightening by hiking the repo rate by 50bps to 4.90% this week. It also upped its inflation forecasts substantially, primarily due to food inflation. We agree that food prices will drive headline CPI inflation higher over the coming months, which is why we expect the RBI to continue frontloading policy tightening.
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