Will the RBI's efforts to tame inflation, manage growth fail? UBS thinks so

While the RBI's monetary policy committee kept rates steady in its recent policy review in April, UBS expects the Indian central bank to hike rates starting June 2022

RBI ( Bloomberg)
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RBI ( Photo: Bloomberg)

Puneet Wadhwa New Delhi
UBS has downgraded India’s real gross domestic product (GDP) forecast for fiscal 2022-23 (FY23) to 7 per cent from the earlier forecast of 7.7 per cent. Beyond FY23, they expect the GDP growth to settle at a trend rate of 6 per cent and see inflation remaining above the Reserve Bank of India’s (RBI’s) comfort level for a few more quarters. 

ALSO READ: Monetary policy: RBI shifts gaze to inflation from growth after 2 years

High global commodity prices (largely energy) and slower global growth on Russia-Ukraine conflict and China's COVID-19 led slowdown in the June quarter; real income shock from energy price hikes, inflationary pressures and the labour market's incomplete recovery resulting in weakness in domestic demand;

First Published: Apr 22 2022 | 3:13 PM IST

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