Citi Scraps Calls for RBI Hikes as Iran Deal Cools Price Risks (opens original article in a new tab)

Citi revised its outlook for India's central bank, removing predictions for interest-rate hikes due to reduced oil price risks from a US-Iran deal, while raising growth forecasts and lowering inflation estimates.

• Citi removed its prediction for two RBI interest-rate hikes in 2024 due to a US-Iran peace deal reducing oil price risks.
• India's central bank may avoid rate hikes if the Middle East truce remains stable and weather shocks do not affect inflation.
• Citi raised India's growth forecast for 2027 to 6.9% and lowered inflation estimates to 4.7%.