According to Moody’s Global Macro Outlook 2022-2023 study, India’s central bank is anticipated to maintain a hawkish posture this year and keep a moderately restrictive policy stance in 2023 to prevent domestic inflationary pressures from escalating.

• India’s GDP is now expected to grow at a 7.7% annual rate, down sharply from the earlier estimate of 8.8% in May.
• Moody’s Investors Services slashed India’s GDP growth by 1.1 percentage points, citing a slowdown in global growth, rising interest rates, and an irregular monsoon as reasons for the economy’s potential to lose steam in the coming quarters.