The Indian rupee and bond prices fell on Monday,
tracking losses in global equities and currencies markets after strong job data
speculated that US Federal Reserve may boost interest rates next month. The
next US Fed policy will start on 21 March.
Analysts expect the RBI to keep interest rates
on hold on expectations that inflation may accelerate further due to higher
crude oil prices and proposed hike in minimum support prices for farmers and
spur RBI to maintain a hawkish stance.
Indian markets are already under pressure after
the government breached its fiscal deficit target for fiscal year 2017 to 3.5%
from earlier target of 3.2% and revised upward its deficit target for next
fiscal year to 3.3% from 3% earlier.
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