RBI draws a 'Goldilocks' economy as trade war looms, retains neutral stance

Slowing inflation, accelerating growth and an economy that relies on domestic consumption may help India remain relatively immune from the escalating trade war

India’s central bank is optimistic the economy would outpace China to become the world’s fastest growing major market this year and help lure investors seeking opportunities as a global trade war brews.

Reserve Bank of India Governor Urjit Patel and his monetary policy committee lowered inflation projections, raising expectations that interest rates will be on hold for sometime now. That may boost flagging investments and demand, both of which were hit by a cash ban imposed in late 2016 and the chaotic implementation of a consumption tax last year.

Slowing inflation, accelerating growth and an economy that relies on domestic