India's GDP Exceeds Expectations, Raising Concerns Over Future Interest Rate Hikes

India's GDP data has surpassed both market and expert expectations, according to Jin10. Alexandra Hermann, Chief Economist at the Oxford Economics Institute, noted that while methodological adjustments complicate year-on-year comparisons, the new statistical series indicates a potentially stronger structural growth trend. The impact of food price fluctuations on overall inflation is expected to diminish, and revisions to inflation data and national account series suggest more robust real economic growth. Consequently, the likelihood of further interest rate cuts is minimal. In fact, strong demand has driven core inflation rates higher, increasing the risk of interest rate hikes before the end of 2026.