RBI stays hawkish; we expect inflation to recede faster than RBI projects, requiring no more hikes in CY23
The RBI’s monetary policy committee (MPC) raised the policy repo rate by a further 25bp to 6.5%, 78bp above the latest CPI inflation print (Dec’22). By an identical 4-2 vote, the MPC remained focused on ‘withdrawal of accommodation’, asserting that inflation “remains a major risk to the outlook”.