A 50-75 bps rate-hike cycle won’t materially derail household consumption: Tanvee Gupta Jain of UBS
UBS Chief Economist Tanvee Gupta Jain stated that the Reserve Bank of India may implement 50-75 basis points of rate hikes in FY27 to manage inflation, which is expected to remain above 5.5%. Despite these hikes, Jain believes household consumption will not be significantly impacted. The RBI's stance shift indicates a response to ongoing economic pressures, with further hikes possible depending on growth dynamics.