S&P expects RBI to raise its policy rate by 25 bps in the current fiscal year

In its Economic Activity for Asia Pacific report, S&P notes that CPI inflation has risen because of higher energy prices, but it is generally manageable. Higher oil prices are likely to push up inflation modestly. Food prices could also rise more due to El Ni. However, preparedness measures will prevent acute supply crunches and limit the macro impact. Depreciation pressure on Asia-Pacific currencies has abated over the third quarter, following significant weakening in the first half of 2026, S&P noted. The majority of Asia-Pacific currencies are still weaker against the U.S. dollar that at the start of the year.