The Reserve Bank of India may have held the repo rate steady at its latest meeting, but do not mistake the pause for a pivot. That is the clear reading from Anubhuti Sahay, Head of India Economic Research at Standard Chartered, who says the MPC's sharply upgraded inflation forecasts amount to a strong forward signal that rate hikes are on the table from August onwards.
"By pushing up their inflation projections higher than what the market expected and flagging upside risks, they have signalled to the market that rate hikes, if not delivered today, does not mean they would not be delivered in later meetings," Sahay told ET Now.
