Towards Goldilocks FY23?
If consensus expectation (based on RBI’s latest Professional Forecaster’s Survey, released last week) is to be believed, India is heading for Goldilocks next year. Inflation is expected to fall further allowing interest rates to remain low for a longer period, Growth is set to return to pre-pandemic level on a normalised base, external environment is expected to remain benign allowing exchange rate stability and build up of FX reserves and fiscal consolidation to progress.
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