CATCH ME UP
India retained its BBB- sovereign credit rating with a stable outlook.
Robust domestic growth remains a key support for the rating.
GDP growth was projected at 6.4% for FY27.
Youth employment risks could weigh on the fiscal profile.
More context
Retail inflation rose to 4.45% in July from 4.38% in June.
July marked the second consecutive month above the RBI’s 4% target.
Food inflation climbed to 5.52%, partly driven by ginger, garlic and onions.
Higher inflation may not immediately change expectations for RBI rate policy.
Monsoon conditions, transport disruptions and crude prices remain potential risks.
Cheaper tomatoes provided some relief from food-price pressures.