While the Reserve Bank of India’s (RBI) decision to hike its repo rate by a further 25bp today was widely expected, what is more surprising is how explicitly it signalled that this is likely to be the last hike of the cycle. In fact, we expect slower growth and lower inflation to pave the way for the RBI to start cutting rates in the second half of 2012.
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