RBI seen delaying rate hikes after India CPI edges up to 4.45%
MUFG's Michael Wan says India's July CPI rose to 4.45% year-on-year, slightly below consensus but above June's 4.38%, with higher food prices the main driver; the RBI is seen delaying rate hikes.
India's July inflation accelerated to 4.45% year-on-year, according to MUFG economist Michael Wan. The reading was a touch softer than consensus but still above June's 4.38%, with food costs the main upward force.
While price growth picked up, the miss versus expectations is shaping the rates outlook. Wan said the Reserve Bank of India is seen delaying rate hikes rather than responding immediately.
That keeps the rupee in focus: a more patient RBI may offer less carry support, even as food inflation remains firm. Market participants will likely watch for any RBI signals on the timing of policy normalization.
Source: FXStreet Forex News