India's Central Bank Unlikely to Look Past Price Pressures
Dow Jones09-01 16:00
0800 GMT - India's central bank won't be able to look entirely past the rise in inflation, UOB economists say as they pencil in two back-to-back 25bp rate hikes starting from December. Under UOB's baseline projections, headline inflation could breach the upper bound of the RBI's 2%-6% tolerance band by fiscal 3Q and remain above 6% until early 1Q. That would imply negative real rates that may necessitate tighter monetary conditions to constrain demand-driven inflation, says UOB's Jester Koh. While price pressures remain highly concentrated in the food category for now, the RBI is still likely to act given the potential influence on household inflation expectations, which have strengthened meaningfully since the start of 2026.
At the request of the copyright holder, you need to log in to view this content
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.
Comments