Perspective on RBI MPC Announcement by Ms. Madhavi Arora, Chief Economist, Emkay Global Financial Services
Below the Perspective on RBI MPC Announcement by Ms. Madhavi Arora, Chief Economist, Emkay Global Financial Services
The policy tone is cautious albeit constructive, balancing uncertainties from the ME conflict, tighter global financial conditions, and El Niño risks against resilient domestic growth and robust FCNR+ inflows. Despite 1Q inflation undershooting RBI's forecast, the MPC has retained its emphasis on El Niño risks, while reiterating that any near-term price pressures would largely be supply-driven unless they broaden into second-round inflation effects for monetary policy to act.
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