The Reserve Bank of India (RBI) reports strong festive demand, especially in urban areas, and positive consumer sentiment, with Deputy Governor Michael Patra among the co-authors.
While economic growth is expected to exceed RBI projections, the article warns that inflation challenges persist. Headline retail inflation eased to 4.87% in October, providing relief from the previous average of 6.7%.
However, the article cautions that there are "miles to go" in addressing inflation. RBI forecasts CPI inflation to average 5.6% in the current quarter, emphasizing the need to bring it down to the medium-term target of 4%. The MPC is expected to retain the repo rate at 6.5%.