FCNR inflows to keep cap on bank deposit rates
The liquidity from the foreign currency non-resident deposits is likely to stabilize bank deposit rates temporarily. This situation will allow banks to benefit from higher lending rates associated with floating rate loans. Despite the current surplus liquidity, analysts foresee a shift towards neutrality by the end of December. The Reserve Bank of India emphasizes the […]
RBI says it will ensure ‘undervalued’ rupee finds its correct level
The Reserve Bank of India has stated its intent to stabilize the undervalued rupee, which reached a five-month low. Despite raising the policy rate for the first time since February 2023, the rupee has fallen due to foreign capital outflows. According to economists, the stronger dollar index contributes to the rupee’s pressure in the market. […]