Sharjah24 - Reuters: India's inflation will hold above the top of the central bank's tolerance band for at least the rest of 2022, longer than previously thought, making several more interest rate hikes in coming months all but inevitable.
One of the later entrants in the current round of global monetary policy tightening, the Reserve Bank of India raised its repo rate by a total of 90 basis points in May and June, but the inflation outlook has deteriorated since an April poll.
Soaring global commodity prices have kept inflation above the RBI's 6% upper tolerance range all year while.
So far, New Delhi's fiscal response to rising costs of living in the country of 1.4 billion has been modest.
Inflation was set to measure 7.3% and 6.4% in Q3 and Q4 2022, respectively, according to forecasts from the July 4-11 Reuters poll. In the previous poll, inflation was set to return to the RBI's tolerance band by end-year.
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