MPC external member Ram Singh signaled that a repo rate hike is not on the cards for now, tying the decision to whether inflation triggers second-round effects. He expects the West Asia conflict to ease, which could moderate price pressures, while saying forex reserves remain adequate and open market operations will support liquidity. Growth, he adds, stays resilient despite supply risks.
Retail headline inflation has jumped past the 4% target set by India’s Monetary Policy Committee, with CPI rising at its fastest pace since June last year. The MPC aims to keep inflation within a 4–6% band, but an ET View note warns CPI could remain elevated due to statistical factors, complicating the path back to target.
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