RBI likely to raise rates, tighten monetary policy: Goldman Sachs

Companies is India have been seeing a pressure on their margins as supply side constraints and global commodity prices increase input costs.

India’s central bank could start tightening monetary policy from next fiscal year as consumer prices rise, according to Goldman Sachs Group Inc.

“Inflation is going to determine what the RBI does over the course of next year,” Santanu Sengupta, senior India economist at Goldman said in an interview with Juliette Saly and Rishaad Salamat on Bloomberg TV. “Input cost increases for the manufacturers will get passed on to consumers over a period of time as the economy reopens and pricing power comes back.”

Companies is India have been seeing a pressure on their margins as supply side constraints and global commodity prices