India Economist/Strategist

Ashutosh Datar

Macroeconomics

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<p>The third meeting of the Monetary Policy Committee (MPC) for FY19 starts on Monday with the rate decision on Wednesday (1st August). The backdrop for this meeting is stabilisation in bond yields which had seen a runaway rise in the last few quarters, continued elevated oil prices, further increase in core inflation and growth data broadly consistent with over 7% full-year GDP growth. The rate decision is thus straightforward – a 25bps increase in the repo rate to 6.5% is more or less a given…</p>
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The third meeting of the Monetary Policy Committee (MPC) for FY19 starts on Monday with the rate decision on Wednesday (1st August). The backdrop for this meeting is stabilisation in bond yields which had seen a runaway rise in the last few quarters, continued elevated oil prices, further increase in core inflation and growth data broadly consistent with over 7% full-year GDP growth. The rate decision is thus straightforward – a 25bps increase in the repo rate to 6.5% is more or less a given…


India: Monetary Tightening Inevitable, Will Start to Hurt...