Report: India's CPI indicates that the central bank can wait until October to raise interest rates again.

Garima Kapoor of Elara Securities stated in a report that after a 3.9% year-on-year increase in India's consumer price index in May, the Reserve Bank of India may be in a relatively comfortable policy space, thus avoiding a policy rate hike in the first half of the fiscal year ending in September. The economist noted that data for May and estimated CPI for June suggest that inflation in India's first quarter may be lower than the central bank's expected 4.2%, citing the possibility of a decrease in oil prices despite the ongoing volatility in the Middle East. She added that the RBI may also need to ensure a balance between slowing economic growth and rising inflation pressures. Elara Securities forecasts two rate hikes starting in October, totaling 50 basis points.