- India's retail inflation rose to 5.54% in September from 4.82% in August, above the 5.40% Reuters poll and a 22-month high.
- The Reserve Bank of India raised rates earlier in October for the first time since 2023 and said further cuts are off the table in the near term.
- India imports nearly 85% of its fuel needs and relies on Middle East supply routes, leaving it exposed to Iran war disruptions.
- The RBI expects headline inflation at 5.2% for FY27, above its 4% medium-term target, and cut its growth estimate to 7.1% after raising it 40 basis points.
- HSBC expects another RBI rate hike in December.
Quotes
“off the table in the near term”
“This may not be a deep tightening cycle, but a tightening cycle it is”