Model Misfires: RBI Grapples With Growing Doubts Over Its Inflation Projections
The Reserve Bank of India’s inflation forecasting model is facing scrutiny from economists due to its consistent overestimation of price pressures this year, which has influenced a hawkish policy stance. The central bank’s inflation miss in the first quarter was 0.7 percentage points, the largest discrepancy in nearly six years and significantly higher than economists’…
