Tightening financial conditions to impact India's growth: CRISIL

The real repo rate will be on a rising trend, as inflation continues to moderate. Meanwhile, the RBI is expected to remain wary of easing its policy stance in its upcoming policy meeting, given that core inflation remains sticky. Liquidity conditions will also not return to surplus as seen in the pandemic years, which will maintain fundamental pressure on domestic interest rates, as per CRISIL.

Borrowing costs for the broader economy will continue to rise, given the pending transmission of the RBI’s rate hikes. This is likely to have some impact on the growth prospects of the Indian economy in the next fiscal as well.

ALCHEMPro News Desk (DP)