India: RBI to hike key rate by 20 bps in December despite Omicron covid – Barclays

Barclays Chief India Economist Rahul Bajoria said in his latest note published Tuesday.

“Despite the emergence of a new COVID variant, we believe the RBI is likely to acknowledge the positive sentiment prevailing in India by raising its growth forecasts upwards during next week's policy review, reflecting the strong pickup in aggregate demand,”

“We believe gradualism will remain the preferred approach, especially in light of the emergence of a new COVID variant. While the new Omicron strain is unlikely to shift macro assumptions, it may add downside risks to baseline forecasts.”

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