International rating agency Moody?s has said that the Reserve Bank of India to maintain a hawkish bias in the near term, especially since CPI growth continues to linger at uncomfortably high levels.
?Given that consumer spending is already robust in India, the increase in government support will likely give household consumption a further boost and may lead to intensifying demand-driven inflationary pressures,?? said the rating agency. The government has so revealed its intention to raise expenditure on social security, health care and education. Nevertheless, the Indian economy will continue to expand at a rapid pace in the second half of the year.
