Mint Quick Edit | Retail inflation has been above RBI’s target for three months in a row: time to act?
Notably, India’s economy has been growing robustly despite the effects of tariffs and global supply disruptions. This grants RBI space to keep its gaze on inflation, especially as the US Federal Reserve looks set to tighten policy this week, which could pressure the rupee down if a squeezed rate spread over US assets results in capital outflows. All considered, it may be best if RBI tightens monetary conditions in India.
