Business Standard

Monetary policy preview: Front-loading rate hikes for macro stability

The current account deficit remains uncomfortably high as India's growth momentum outpaces the rest of the world.


Samiran Chakraborty
In the run-up to the Mone­tary Policy Committee (MPC) meeting, global commodity prices have retraced to almost the pre-Ukraine conflict levels and the Consumer Price Index (CPI) trajectory in India has broadly followed the expected path. While this will provide a sense of comfort to the MPC, there are again some brewing supply-side shocks on food prices that can pose upside risks to near-term inflation prints.
Deficient rainfall in some parts of the country is threatening prices of rice and pulses, while excess rainfall in others is causing vegetable prices, particularly toma­toes, to move up again. The trend in food
Disclaimer: These are personal views of the writer. They do not necessarily reflect the opinion of or the Business Standard newspaper

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First Published: Sep 27 2022 | 11:54 PM IST

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