Shumita Sharma Deveshwar

Director, India Research
+91 98718 22780

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INDIA: Shift to pro-growth policies has many caveats

Overview

The Reserve Bank of India (RBI) clearly likes to surprise markets. It did so again on 4 March with its second inter-meeting repo rate cut, when most analysts were expecting no change until April following the government’s relaxation of fiscal norms. The central bank and the government seem to be going for growth but we believe the subtext of the RBI’s policy statement indicates gradual monetary easing from now on. It cited easing inflation, still weak economic growth and,...

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