The Indian economy is probably getting back on track faster than expected

New Delhi: The Indian economy is probably recovering faster than expected and the Reserve Bank of India (RBI) may now abandon the easing of interest rates. This is according to a report by Oxford Economics, a global forecasting company. Inflation will average more than 6 per cent in the fourth quarter of the current financial year and the central bank will keep policy rates unchanged in its December monetary policy review, the report said.

Inflation, as measured by the Consumer Price Index (CPI), reached its highest level since October 19, the report said. Prices have gone up in all sectors except fuel. Inflation will be at its highest level in the fourth quarter and in 2021 we will need to be more vigilant.

Rising prices of eggs and vegetables pushed retail inflation to an estimated six-and-a-half-year high of 7.61 per cent in October. This is much higher than the satisfactory level of the Reserve Bank. Retail inflation stood at 7.27 per cent in September 2020.

Oxford Economics said that the data on the basic activities of the economy during this period shows that the economy is recovering faster than we expected. So it is likely that the RBI's relief may be met.