Fixed Income And Currency Market

14 Aug 2022

Why RBI prefers high inflation?

linkedIn Logo twitter logo

RBI is still behind the inflation curve with repo rate at just 5.4% against inflation at close to 7% and is in no hurry to raise rates. High inflation brings down relative numbers like fiscal deficit and current account deficit. Bond yields will have to stay high given RBI preference for high inflation.

author dp
Arjun Parthasarathy
You need to Sign In to view details.


Information herein is believed to be reliable but Arjun Parthasarathy Editor: does not warrant its completeness or accuracy. Opinions and estimates are subject to change without notice. This information is not intended as an offer or solicitation for the purchase or sale of any financial instrument. The financial markets are inherently risky and it is assumed that those who trade these markets are fully aware of the risk of real loss involved. Unauthorized copying, distribution or sale of this publication is strictly prohibited. The author(s) of the content published in the site may or may not have investments in the assets discussed in the pages/posts.

Copyright © by Arjun Parthasarathy 2019-2024