The global economic outlook remained marred by the synchronized global monetary policy tightening and spillover from the Russia-Ukraine conflict. At the same time, some respite can be attained from the easing of the supply side constraints and moderation of global commodity prices. India’s economic recovery has remained resilient to the external headwinds, though we see some moderation arising on the external demand front. Meanwhile, inflation eased in May-June from the eight-year high of 7.8% (in April) but remained above 7%. Given elevated inflation, currency pressures and the monetary policy tightening by the major central banks, the RBI is expected to continue the front-loading of the rate hikes.