RBI rate hike will not stem outflows, leaving central bank in a bind
FROM THE WIRE · ECONOMICTIMES.INDIATIMES.COM
Indias first RBI rate hike in four years may not stop record capital outflows or ease pressure on the rupee, which has fallen 7% this year. Foreign investors have withdrawn $30 billion from Indian equities, while rising hedging costs and narrowing India-US rate differentials…
Read at the source ↗MARKET IMPACTHIGH✦ News Impact agent estimateTone: expected bearishRBI's first rate hike in 4 years unlikely to stop record capital outflows or ease rupee pressure, down 7% this year.AI-generated summary
✦ IN BRIEF · AIAI-generated summary
- 01Foreign investors have withdrawn $30 billion from Indian equities.
- 02Rupee has fallen 7% this year despite RBI's first rate hike in 4 years.
- 03Rising hedging costs and narrowing India-US rate differentials threaten appeal of Indian stocks and bonds.