India’s monetary policy increases shift towards growth

According to global brokerage firm Nomura, India’s monetary policy would shift priority to growth in the near term, while inflation will ease in the long run.

Monetary policy should remain unchanged after February, according to the report. The statements came as data showed that India’s industrial output fell by 4% in October, falling to sub-zero levels.

Last week, India’s rate-setting panel raised the policy repo rate by 35 basis points to 6.25 percent. According to Nomura, the Reserve Bank of India would shift its attention totally to supporting growth in the coming years.

It anticipates 75 basis point cumulative rate decreases in the second half of 2023, with 25 basis point cuts in August, October, and December.