GDP data for Q1 released this week showed that the economy weathered the Omicron wave pretty well, and the timelier data suggest a solid performance so far in Q2. That said, there were also further signs of price pressures building in May. The resilience of the economy may give the RBI a bit of extra confidence to press ahead with frontloaded policy tightening at its meeting next week in response to those price pressures. We're expecting a 50bp hike in the repo rate to 4.90%.
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