RBI likely to revisit focus on growth risks: Oxford Economics
Global forecasting firm Oxford Economics has stated that the recent spike in headline inflation to 6.3 per cent in May 2021 might lead the Reserve Bank of India (RBI) to revisit its focus on growth risks. However, it believes that a rate hike is still unlikely this year. Oxford Economics further added that the underlying dynamics of the May inflation print augur caution and the recovery remains on uncertain ground. With fiscal support in retreat, the RBI will likely be hesitant to remove policy accommodation anytime soon.