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.
The Federal Reserve is targeting the hikes to bring down inflation, despite recent signs of slowing, which is still running near its highest level since the early 1980s.
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.
Equity markets soared, with Nasdaq surging more than 6%. But Cleveland Fed President Loretta Mester said that main risk to inflation is the central bank not hiking rates enough.
On Wednesday, US Federal Reserve hiked its Federal Funds Rate by 75 basis points. It spurred a global sell-off and led to the rupee crossing the psychological 80-to-a-dollar mark.
Aggressive rate hikes will dampen demand & cause economic slowdown. In this uncertain scenario, India should avoid knee jerk policy responses & strengthen its macro-fundamentals.
Sources said that RBI is intervening in all foreign-exchange markets including the offshore markets and will continue to do so to protect the rupee which slid to a record low Monday.
Economists say there are weaknesses in India’s GDP data. But statisticians claim the accusations are based on flawed understanding, saying while GDP has problems, the economists are looking in the wrong places.
Both the governments expressed their commitment to strengthening their maritime cooperation to strengthen the maritime safety and security framework in the region.
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