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India鈥檚 inflation rate isn鈥檛 likely to fall much further, meaning real policy rates are now high and the Reserve Bank of India can start thinking about reversing some of its tightening in the final quarter of this year, Robert Carnell, regional head of research, Asia-Pacific at ING, writes in a note. But the 4.25% rate in May could be as low as inflation gets for a while, with the consumer-price index having risen by 0.5% on month in the last two months, he writes, suggesting more evidence of signs of a slowdown in the economy is needed before rate cuts begin. Still, ING currently pencils in 50 basis points of easing...
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