Key facts
- Citi economists have removed their forecast for two interest-rate hikes by India's central bank by March.
- The change in forecast is linked to an interim US-Iran peace deal.
- The deal is expected to lower the risk of rising oil prices impacting inflation.
- The Bank of England held interest rates at 3.75 percent.
- The Bank of England's decision was influenced by the US-Iran agreement's impact on oil prices and inflation.
Economists at Citi have withdrawn their prediction of two interest-rate increases by India's central bank before March of the following year. This adjustment in outlook is attributed to an interim peace agreement between the United States and Iran, which has diminished the likelihood of escalating oil prices exacerbating inflationary pressures. Concurrently, the Bank of England maintained its interest rates at 3.75 percent, also citing the impact of the US-Iran agreement on lowering oil prices and easing inflation risk for the UK economy.