India’s Economy Moving Into Low Inflation Regime, RBI Paper Says
- Author Michael Patra advocates ‘wait and watch’ policy
- Indicators suggest IMF’s 5.9% growth forecast may be an error
The Reserve Bank of India headquarters in Mumbai.
Photographer: Dhiraj Singh/BloombergThis article is for subscribers only.
India’s economy is likely moving into a low inflation regime as supply shocks fade and demand cools, according to a paper co-authored by Reserve Bank of India Deputy Governor Michael Patra.
“Since the second half of 2022-23, there are signs of a transition to a low inflation regime,” wrote Patra, and his colleagues at the central bank, Joice John and Asish Thomas George, in an article released with RBI’s April bulletin Friday. The views are not officially endorsed by the central bank.