Minutes Release Shows RBI Sees Inflation Slowing in H1 Next Year

RBI minutes release here: https://rbidocs.rbi.org.in/rdocs/PressRelease/PDFs...

Statement highlights:

• While vegetable prices are likely to see seasonal winter correction, prices of cereals and spices may stay elevated in the near-term on supply concerns.
• Global demand is weakening. Unabating geopolitical tensions continue to impart uncertainty to the food and energy prices outlook.
• The correction in industrial input prices and supply chain pressures, if sustained, could help ease pressures on output prices; but the pending pass-through of input costs could keep core inflation firm.
• Headline inflation is expected to remain above or close to the upper threshold in Q3 and Q4:2022-23. It is likely to moderate inH1:2023-24 but will still remain well above the target.
• The MPC is of the view that, further calibrated monetary policy action is warranted to keep inflation expectations anchored, break the core inflation persistence and contain second round effects.