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India's March manufacturing sector growth weakens: PMI
India's March manufacturing sector growth weakens: PMI

New Delhi, April 4 (TIWN) The growth rate of India's manufacturing sector sequentially slowed in March 2022 due to softer rise in demand.

This is against the backdrop of both domestic and global developments. While growth recovery in India begins to exhibit signs of durable recovery, higher commodity prices led by escalated geopolitical tensions and the hawkish pivot in key global central banks will likely have a bearing on MPC deliberations.

Further, we expect inflation to remain above the upper threshold of the RBI's inflation targeting band for the next few months and to decelerate to around 5.5 per cent by 4Q22, Morgan Stanley said.

As such, we expect the RBI to adjust the reverse repo rate upwards in the April policy and follow that up with a repo rate hike in the June policy, with a cumulative rise of 125bps in F2023, the foreign brokerage has projected.

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