Major financial institutions including Citi are reassessing their monetary policy forecasts for India's central bank. Recent inflation data showing June retail prices at 4.38% combined with stable core inflation around 4% has prompted economists to extend their timelines for anticipated interest rate increases. The Reserve Bank of India appears poised to maintain its current policy stance, with rate adjustments now contingent upon core inflation sustaining levels above 4.5%. This recalibration reflects growing confidence in India's inflation management trajectory.

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