Mumbai, June 9 -- As the US economy goes through a stagflationary shock owing to higher tariffs, India and other countries will remain outliers, according to Claudio Irigoyen, managing director and head of global economics research at Bank of America Global Research.

While Irigoyen expects the US Federal Reserve to refrain from cutting rates as it tackles lower growth and higher inflation, he says other central banks are likely to cut rates as they face lower growth and lower inflation. The market was earlier expecting five rate cuts from the US Fed this year, but has lowered its expectation to two.

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"We call it a slowdown but not a reces...