India's economy facing temporary 'sugar high', caution needed on RBI rate hikes: JPMorgan

JPMorgan Chase economist Jahangir Aziz has cautioned that India's economy is experiencing a temporary "sugar high" fuelled by past stimulus measures, suggesting markets may be overestimating the number of interest rate hikes the Reserve Bank will implement this year.

Aziz indicated that while an initial quarter-point rate increase is expected soon, future rate decisions remain uncertain for policymakers. He warned that successive rate hikes could dampen both investment and consumption in the economy, potentially undermining the growth momentum.