Foreign institutional investors returned to Indian bond markets with $1.84 billion in June inflows, the strongest month in 16 months, after the government eliminated capital gains and withholding taxes on overseas debt investments.
DBS sees room for 50 basis points more Indonesia hikes in 2H 2026 amid rupiah slippage and geopolitical tensions.
India can absorb higher crude prices and geopolitical disruptions without lasting damage.
Economists project India's GDP growth will moderate to 6.7 percent in FY27 amid West Asia crisis-driven capital outflows and widening current account deficit to 2.1 percent of GDP, though RBI dividend payouts and strong forex reserves provide crucial buffers.
Fuel prices may rise further due to ongoing under-recoveries and elevated global crude prices.
Japan: Solid GDP but JPY still weighed by trade – DBS
Indonesia's central bank halved monthly dollar purchase limits to $50,000 per person, intensified forex market intervention, and coordinated bond purchases to stabilize the weakening rupiah amid domestic and external economic pressures.
Indian bond yields ended April near 7% due to surging crude oil prices and US Treasury yields.
India's post-conflict data shows rising wholesale inflation and CPI, with WPI climbing further, according to DBS's Radhika Rao.
The Reserve Bank of India maintained its repo rate at 5.25 percent, with economists and industry leaders endorsing this cautious stance as appropriate given persistent inflation risks from geopolitical tensions and volatile energy prices threatening growth projections.
Economists and industry leaders support RBI's cautious stance amid inflation risks and global uncertainties.
India's central bank maintained unchanged interest rates Wednesday amid Iran conflict uncertainties, with economists expecting continued monetary pause until clearer economic impacts emerge from geopolitical tensions and inflation pressures.
Food prices lift India's May CPI inflation to 3.93% in fifth straight monthly rise
The RBI is unlikely to hike rates at the June MPC meeting, instead focusing on inflation.
India's government considers measures to contain the widening current account deficit amid a depreciating rupee.
India's economy faces West Asia crisis headwinds, but economists say the RBI's anticipated 2.8-3 trillion rupee dividend and substantial forex reserves will cushion impacts, even as GDP growth moderates to 6.7% and the current account deficit widens to 2.1% of GDP.
India's bond market prices in possible RBI rate hikes amid inflation concerns.
India's rupee fell to an all-time low of 95.74 against the dollar Wednesday, weakening over 5% since February amid surging oil prices from US-Iran tensions and external pressures, prompting government intervention and speculation about potential RBI rate hikes.
Indian bond yields ended April near 7% due to surging crude oil prices and US Treasury yields.
The Bangko Sentral ng Pilipinas is expected to raise interest rates further to combat inflation.
India's central bank held its key policy rate at 5.25% Wednesday, citing Middle East tensions that threaten to disrupt oil supplies and potentially reduce economic growth to 6.9% while pushing inflation risks higher for the import-dependent South Asian economy.
Economists and industry leaders supported the Reserve Bank of India's decision to maintain the repo rate at 5.25 percent, citing geopolitical tensions and energy price risks that require cautious monetary policy balancing inflation control with sustaining economic growth.
India's central bank held its policy rate unchanged Wednesday amid Iran war uncertainty, with economists noting the RBI shifted to a cautious stance while maintaining flexibility to respond to evolving supply disruptions, inflation risks, and geopolitical developments affecting the South Asian economy.
The RBI will likely keep interest rates steady and revise inflation and growth forecasts due to the uncertain economic situation.
Instant View: India's economy grows 7.8% in January-March
India GDP growth likely slowed to 7.3% in Q4 FY26: Mint poll
The rupee recovered 49 paise to settle at 96.37 against the US dollar on Thursday.
Petrol and diesel price hike reduces OMCs' daily losses by a fourth to Rs 750 crore.
India raises petrol and diesel prices by Rs 3 per liter due to surging global crude costs.
Economists Don’t Expect RBI to Exhibit any Urgency to Tighten Policy Rate
DBS predicts the BSP may hike interest rates in May due to peso weakness and inflation risks.
The Philippine central bank is expected to maintain its hawkish stance amid inflation risks from Middle East tensions and elevated energy prices, though analysts anticipate a rate pause on April 23 as economic growth remains weak.
Economists and industry leaders support the Reserve Bank of India's cautious stance on interest rates amid inflation risks and global uncertainties.
India's central bank held its key policy rate at 5.25% amid Middle East tensions threatening oil supplies, warning of slower growth and higher inflation risks for the import-dependent South Asian economy facing significant economic headwinds.
India's Reserve Bank maintained its repo rate at 5.25 percent, with economists and industry leaders supporting the cautious stance amid geopolitical tensions and rising energy prices threatening inflation and growth projections.