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.

Image
Premium

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 www.business-standard.com or the Business Standard newspaper

Don't miss the most important news and views of the day. Get them on our Telegram channel

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

Explore News

To read the full story, subscribe to BS Premium now, at just Rs 249/ month.

Key stories on business-standard.com are available only to BS Premium subscribers.

Register to read more on Business-Standard.com