India Rate Hike Fails to Stem Outflows
Indias recent interest rate increase fails to reverse record capital outflows as the rupee weakens. Analysts note the modest policy tightening does little to curb mounting currency and inflation pressures.
Xurve View
Insights:
Xurve View
India delivered a 25 basis-point rate hike during Wednesday afternoon trading, marking its first tightening move in four years. The modest increase failed to reverse record capital outflows, leaving the central bank battling currency depreciation. The rupee fell 7% this year, trading near its all-time low of 96.96 against the dollar following the policy decision.
