Skip to main content

Drop in inflation does not clear the way for a policy rate cut

Last month’s drop in India’s wholesale price inflation will have come as a relief to policymakers who have been trying, with limited success, to lower inflation over the last three years. Market clamour for more rate cuts is set to rise. However, keeping inflation low on a sustained basis will require a more calibrated pace of easing than is widely realised. We maintain our call that policy rates will remain on a prolonged hold.

Become a client to read more

This is premium content that requires an active Capital Economics subscription to view.

Already have an account?

You may already have access to this premium content as part of a paid subscription.

Sign in to read the content in full or get details of how you can access it

Register for free

Sign up for a free account to:

  • Unlock additional content
  • Register for Capital Economics events
  • Receive email updates and economist-curated newsletters
  • Request a free trial of our services


Get access