 "Saugata Bhattacharya")
The Monetary Policy Committee (MPC) is sure to hold the repo rate and wait and watch in the current uncertain environment. The global economy is an unusual mix of synchronised growth and rising economic and political uncertainty. The US Fed is poised to raise rates at least twice more in 2018, with the rising rate gaps between other central banks likely to engender financial volatility, affecting “carry” driven portfolio flows to emerging markets. Trade frictions might also spill over to capital markets, particularly US Treasury bond holdings.
In India, besides the usual anxiety about monsoon rains, an added dimension is the
