Indian Growth Without Inflation Suggests Higher Potential

(Bloomberg) -- In Bloomberg Economics’ view, India’s potential growth is around 8-8.5 percent, above the consensus and Reserve Bank of India view of around 7-7.5 percent. Going ahead, the output gap is set to remain negative and continue to keep inflation in check. With inflation already starting to surprise on the downside, BE expects the RBI to return to a long pause on rates.

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