Axis Bank predicts that the RBI will not reduce rates in 2024 due to volatile food prices and rising global prices. The bank predicts that food inflation will remain volatile, with supply shocks and erratic monsoons contributing to the situation. Despite export restrictions on wheat and rice, rising global prices have affected local prices, increasing the risk of entrenching inflation expectations.
Though the Board of India Today Economists (BITEs) believes India is far from stagflation, they acknowledge that high energy prices pose serious challenges to growth and require RBI intervention - Issue Date: Apr 25, 2022