Commodities’ surge could pressure RBI to tackle inflation quickly: S&P : The Tribune India

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Commodities’ surge could pressure RBI to tackle inflation quickly: S&P

Commodities’ surge could pressure RBI to tackle inflation quickly: S&P


Mumbai, March 10

The RBI may feel pressure to tackle inflation sooner than it expected following a surge in global commodity prices, sovereign ratings analyst Andrew Wood of S&P Global Ratings said on Thursday.

Pegs 9.8% growth

  • The ratings agency expects India to grow at 9.8% in FY22, and stay above trend to achieve 7.8% growth in FY23

Gold tumbles Rs992, silver tanks Rs1,949

  • Gold tumbled Rs992 to Rs52,635 per 10 gram in Delhi on Thursday reflecting a decline in international prices while silver tanked Rs1,949 to Rs69,458 per kg, from Rs71,407 per kg.

Although elevated, India’s current ratio of debt to GDP, at about 90%, has already been factored into the agency’s existing sovereign rating of BBB- with a stable outlook, Wood said on a regional conference call.

“We had expected a gradual start to the normalisation of rates and monetary policy as a whole from the RBI,” he added.

“But should inflation breach its 4% to 6% target for a longer period of time, the central bank could face pressure to normalise more quickly.” — Reuters

#rbi


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