India’s c.bank raises natural rate of interest as economy recovers

India’s natural interest rate has increased post-pandemic due to rising potential output, according to the Reserve Bank of India’s latest bulletin on Thursday.

The estimated natural rate for Q4 2023-24 is now 1.4-1.9 per cent, up from the previous estimate of 0.8-1.0 per cent for Q3 2021-22.

This rate represents a balance between growth near potential and stable inflation.

Attribution: Reuters