HSBC Chief India Economist Pranjul Bhandari expects the Reserve Bank of India to keep interest rates unchanged at its upcoming policy meeting but believes policymakers may adopt a more hawkish stance as higher crude oil prices and rupee weakness increase inflation risks.
The Indian economy continues to demonstrate resilience despite a challenging global environment, according to the Finance Ministry’s latest Monthly Economic Review for May 2026. The report describes the near-term outlook as one of “cautious resilience,” highlighting strong structural fundamentals while warning that inflationary pressures, volatile crude oil prices and monsoon uncertainties could pose risks to growth in FY27.
