Reserve Bank of India to remain on-hold amid stagflation
Analysts at Nomura offer their expectations from the Reserve Bank of India (RBI) in the coming months, in light of India’s rising inflation and economic slowdown.
Key Quotes: “Expect India headline inflation to remain at similarly elevated levels in January, but stagflation will be temporary.
RBI will continue to stay on hold during this period of stagflation. To remain accommodative in Feb, continue to expect 25 bps rate cut in April-June.”
USD/INR Price Analysis: Key support may hold on India stagflation threat
USD/INR may bounce up from key support as markets may offer Indian Rupee on Stagflation fears. The currency pair is trapped in a narrowing price range since September. Currently, the lower edge of the triangle is located at 70.55.
USD/INR may gap lower around 70.55 as Indian equities may open higher, tracking the overnight record highs in US stocks.
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