A weakening balance sheet may explain RBI’s rate actions4 min read 15 May 2022, 10:40 PM IST
Inflation is too high but its moves could’ve been forced by a need to shore up the value of its foreign assets hit by US rate hikes
Mounting inflation concerns do not adequately explain the urgency behind the Reserve Bank of India’s (RBI) decision to conduct an out of turn monetary policy meeting on 4 May. Perhaps it had more to do with the fact that the US Federal Reserve was expected to deliver a substantial rate hike along with some hawkish commentary in a matter of hours.
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