By Tushar Goenka
BENGALURU (Reuters) – India’s economic recovery from pandemic-related shutdowns is at risk of a further delay in the six months that are left of this fiscal year, according to economists in a Reuters poll, who expect elevated inflation to hold or accelerate, not fall.
Price pressures in the world’s second most populous country have soared thanks to rising fuel prices, but the Reserve Bank of India is not expected to raise interest rates until at least the beginning of next financial year, in April-June 2022.
With lingering concerns about risks to growth, that leaves the RBI slightly behind many of its emerging market peers that are already raising rates.
“While extremely accommodative monetary policy has prevented the economy from falling off a cliff, a continuation of this policy in the absence of appropriate fiscal support will barely move the needle in terms of the pace of recovery of lost growth potential,” said…