A YES Bank report says the gap between India's interest rates and those of G7 economies matters for monetary policy, as it helps attract foreign debt capital while the US Federal Reserve is expected to continue its rate-hiking cycle. The minutes of the RBI's October MPC meeting show its inflation projection for Q3 FY27 at 6%, the top of its 2-6% tolerance band. September inflation rose broadly, with core and core-excluding-precious-metals inflation both up, household inflation expectations increased, and businesses were passing higher input costs to consumers. Growth remains resilient, with Q1 FY27 GDP expanding 7.8% on strong private consumption, rising exports and services momentum. YES Bank forecasts a cumulative 50-basis-point repo rate hike, with 25 basis points in December and 25 in February, though this is the bank's forecast rather than an RBI decision.
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