India's inflation in September grew faster than expected, which proves that it is reasonable for the central bank to be cautious at a time when calls for interest rate cuts are raging. According to the data, India's CPI rose 5.49% year on year in September, the highest increase in nine months. This is compared to 3.65% in August. The Bank of India kept the benchmark interest rate unchanged at 6.5% last week, and it expects inflation to accelerate in September, mainly due to statistical reasons. It has also relaxed its policy stance, opening the door for interest rate cuts over the next few months. However, the governor of the Bank of India has repeatedly stated that he hopes to reduce inflation to the target level of 4% in the long term before considering easing policies. There are signs that inflation may ease in the coming months due to higher-than-normal rainfall. India has ushered in its best monsoon season in 4 years, laying the foundation for a good harvest of rice and other crops, and boosting the economic prospects of rural areas.

India's inflation in September grew faster than expected, which proves that it is reasonable for the central bank to be cautious at a time when calls for interest rate cuts are raging. According to the data, India's CPI rose 5.49% year on year in September, the highest increase in nine months. This is compared to 3.65% in August. The Bank of India kept the benchmark interest rate unchanged at 6.5% last week, and it expects inflation to accelerate in September, mainly due to statistical reasons. It has also relaxed its policy stance, opening the door for interest rate cuts over the next few months. However, the governor of the Bank of India has repeatedly stated that he hopes to reduce inflation to the target level of 4% in the long term before considering easing policies. There are signs that inflation may ease in the coming months due to higher-than-normal rainfall. India has ushered in its best monsoon season in 4 years, laying the foundation for a good harvest of rice and other crops, and boosting the economic prospects of rural areas.