Friday, October 25, 2013

Reserve Bank of India faces a difficult choice

............In sum, stability in the rupee has given the central bank room to unwind extraordinary liquidity-tightening measures relatively quickly. On the other hand, we expect RBI's surprise September repo rate rise, by and large, to be a one-off, rather than the first of a series of increases. After all, the growth outlook remains depressed and inflation prints may moderate in the coming months,........

No comments: