RBI's dovish inflation view pushes back rate hike timing expectations

Citigroup sees the Reserve Bank of India lifting the repurchase rate no earlier than October, versus its earlier August prediction

Economists are pushing back estimates for when India will raise interest rates after Governor Shaktikanta Das lowered inflation and growth forecasts, betting that the central bank can stay focused on spurring economic activity.
 

Citigroup Inc. sees the Reserve Bank of India lifting the repurchase rate no earlier than October, versus its earlier August prediction. HSBC Holdings Plc shifted to July-September from April-June, and Barclays Plc moved to August from April.

The firms are, however, split on whether such a delay is risky. While Citigroup warns that the RBI may fall behind the curve, HSBC says the nation’s promising winter harvest