There are little signs of economy overheating: Saugata Bhattacharya

RBI MPC member Saugata Bhattacharya stated there are little signs of the economy overheating and that financial conditions are already restrictive enough to make a rate hike unnecessary. The policy repo rate stands only 15 basis points above the FY27 forecast CPI inflation of 5.1%, with core inflation revised to 4.7% from 4.4%, while GDP growth forecast was lowered to 6.6% from 7.6%. He noted crude oil prices are likely to average below the 95 dollars per barrel assumption used in RBI projections, and that expected FCNR(B) and ECB inflows could add to autonomous domestic liquidity depending on RBI's liquidity management.