Quote on RBI Monetary Policy by Garima Kapoor Deputy Head of Research and Economist at Elara Capital
Below the Quote on RBI Monetary Policy by Garima Kapoor Deputy Head of Research and Economist at Elara Capital
Acknowledging the risks to growth and inflation owing to disruption in energy and other supply chains, MPC decided to hold policy rates while awaiting further clarity on the impact of West Asian crisis. We do not see MPC hiking policy rates until CPI inflation durably surpasses 6% and inflation expectations get unhinged. We believe the 6.9% growth estimate put out by RBI for FY27 may need a reassessment as full pre-war energy export volumes might take 3–6 months due to backlog, diverted tankers, and partial infrastructure damage.
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