Encouraging outlook

Inflation is expected to ease in the coming quarters

The last policy review of 2023 by the Reserve Bank of India’s Monetary Policy Committee (MPC) was widely expected to leave the policy rate and stance unchanged. The committee rightly decided not to surprise the markets on Friday and ended the year on a satisfactory note. In fact, the year turned out to be much better than expected. It started with heightened levels of uncertainty, with very high inflation rates in advanced economies and central banks struggling to cope with them. It was not clear for how long inflation rates in some of the advanced economies would remain elevated and