RBI stays upbeat but Morgan Stanley sees 2025 growth losing steam
RBI maintains GDP forecast at 6.5% for FY26 while lowering CPI estimates to 3.1%. Morgan Stanley predicts growth to moderate to 5.9% in QE Dec-25, citing global slowdown. RBI remains watchful of external demand due to tariff negotiations and geopolitical tensions. Headline inflation projected to be 3.1% for FY26, driven by lower food prices.