In a rare joint statement, central bank chiefs including those at the ECB, Bank of England and Bank of Canada said preserving central bank independence is vital for economic stability.
A depreciating dollar and abundant liquidity provide an opportunity to explore the rupee’s potential regional role. This represents a significant step toward monetary autonomy.
March has been a good month for equity & currency, backed by FPI inflows & weak dollar. Going forward, tariffs, Chinese markets, oil prices & corporate earnings may have a role to play.
US & Indian policy rates have seen similar trajectory. With Fed’s rate cuts, difference between interest rates in India & US may widen, leading to foreign capital inflow & stronger Rupee.
SVB collapse was a circle of deposit withdrawals leading to fears of a bank run, which then resulted in a bank run. The US regulators have, however, stepped in quickly.
Indian industries like apparel and gems and jewellery — whose top export destination is the US — set to take a hit due to global downturn. All eyes on US Fed's meeting Wednesday.
Projection for inflation has been retained at 6.7% for this year and while peak inflation may be behind us, it's still above RBI's comfort level. So, keeping an eye on it is desirable.
This is the game every nation is now learning to play. Some are finding new allies or seeing value among nations where they’d seen marginal interest. The starkest example is India & Europe.
COMMENTS