India's inflation trajectory is giving the Reserve Bank of India more room to hold rates through Q1FY27, but food and fuel risks could still flip the script in H2.

How this affects you

This suggests that the Reserve Bank of India is less likely to implement a rate hike in August, providing some relief to borrowers and potentially boosting economic activity as borrowing costs remain stable. However, rising food and fuel prices, particularly with the El Nino threat, could shift this outlook later in the year, impacting household budgets.