Brexit: The dawn of uncertainty
The Brexit verdict has swung like a wrecking ball through the global financial markets.
The decision by a majority of British voters that their country should leave the European Union may
lead to calls for similar referendums in many other European countries.
This may not be a Lehman moment when markets freeze in fear because counterparty risk has shot up, but the political uncertainty is undeniable.
Indian authorities will now have to be on their toes.
Two other sources of volatility are also on the horizon: the possibility that US interest rates will go up by the end of the year, and the withdrawal of some $20 billion from India as dollar deposits that were pulled in three years ago mature but are not rolled over by banks.
What is needed in these months is maturity rather than bravado.
And it is a terrible time for a witch-hunt against the top economic bureaucracy—just when their expertise is most acutely needed to manage global shocks.