India’s Central Bank (RBI) saw fit to raise interest rates at its mid-quarter review on September 16 and, shockingly, it did it again in October. Rates are now 1.75% higher than they were in April. India’s real economy has only decelerated since that time, hence everyone’s surprise with the latest bank move. A month ago Fearful Symmetry (a monthly chronicle of India’s economy) mentioned “puritanical stubbornness up to and including the potential for self harm”. That sentiment carries over, with yield. Below is Fearful Symmetry’s full report (thanks to Macrobusiness)…

India analysis

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