RBI adopts cautious stance on inflation amid geopolitical uncertainty. Deputy Governor Poonam Gupta signals the central bank remains in wait-and-watch mode, monitoring how external shocks impact price pressures. The RBI's base case assumes conflict resolution within months, with supply chain restoration following. Growth is projected to recover in the second half of the fiscal year, though the pace depends on energy price stabilization. The central bank identified spare capacity in the economy that could support demand increases. However, geopolitical tensions and currency volatility pose ongoing risks to monetary policy decisions. Officials expect positive growth surprises from potential trade deals and reform benefits as the year progresses.
Post from MarketNews_en
Log in to interact with content.