A sharp rise in inflation over recent months, and a jump in household inflation expectations, has raised concerns that the RBI has fallen behind the curve and is squandering its hard-won inflation-fighting credentials. By contrast, we see the RBI’s decision to respond with a rate hike this month as evidence of a disciplined approach that should ensure inflation doesn’t rise too much further.
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