India’s PMI readings moderated in September but the more important point is that they still indicate healthy growth in both manufacturing and services. The RBI will remain comfortable tightening policy over the coming months. However, the further drop in the input and output price components reinforces our view that price pressures have peaked and that the central bank will now shift to smaller rate hikes, most likely of 25bp increments.
Subscriber content
Read this in full, free
Start a free trial and use one of your 10 free starter credits to unlock this piece.