RBI-MPC to dial up hawkishness even as it holds policy steady

Food price spikes in India, typical at the onset of the monsoon, drove up headline inflation in June, corroborating the MPC’s view that the fight against inflation is far from over, the Reserve Bank of India (RBI) said in its bulletin last month. The rise in food prices, however, has been sharper than expected this year and is seen lasting longer.