Commerzbank’s Dr. Henry Hao and Moses Lim note India’s economy remains supported by strong domestic demand and exports, with growth projected at 6.7% in fiscal 2026-2027 versus 8% previously. Inflation is forecast at 5%, within the RBI’s 2-6% band, allowing policy to stay on hold at 5.25%. FX reserves above USD700bn bolster RBI’s ability to smooth INR volatility, though higher Oil and Gold prices remain key risks.
RBI policy anchored by stable inflation
“The economy is holding up well, supported by firm domestic demand and encouraging export growth. Although growth is expected to moderate this year, it is still projected to expand by 6.7% for…
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