“The downtick on expected GDP growth was expected and supported RBI’s accommodative stance while being watchful of inflation building up. On the latter, there are multiple forces at work, including widespread temporary supply disruptions. However, with a gradual reopening and a likely good Monsoon, some of the noise in data should go away, giving RBI more control. With developed economies generally close to achieving the threshold level of vaccinations, the global economic backdrop will be favourable and aid recovery for India as well.”
The quote was originally published in www.financialexpress.com on 7th June 2021.
The opinions expressed are author's own. Fidelity International is not responsible for the author's opinions.