Latest report from India’s central bank
- RBI sees effect of currency decline adding to price pressures
- report shows RBI holding 266 tonnes of gold of its 557 tonne reserves overseas as of june 30
- “utmost attention” needed to contain financial stability risks from banks’ deteriorating asset quality
Add:
Speaking on the report :
- Fin min sees Indian growth remaining ” flattish” in first quarter of fiscal year,picking up in Q2 -Q4
- recent measures by RBI aimed at reducing volatility and avoid speculation ( back to the drawing board then methinks)
- thinks value of rupee is undervalued ( no surprise there)
- Fin min say no intention to introduce capital controls
- exploring structural measures to reduce current account deficit
All in all it’s not exactly a report or set of comments to instill any confidence
Expect more downward pressure on INR and equities
