Financial markets trying to discount changing news flow: Rabobank Intl

The accommodative RBI policy, combined with fiscal stimulus and (further) increase in energy commodities, particularly oil, increases the odds of high inflation, say Lambregts and Eijkelenburg

Global financial markets have been on edge, following escalation in geopolitical events in Russia and Ukraine. JAN LAMBREGTS, managing director and global head of financial markets research, Rabobank International, and WOUTER VAN EIJKELENBURG, its economist, tell Puneet Wadhwa in an a interview that the accommodative Reserve Bank of India (RBI) policy, combined with fiscal stimulus and (further) increase in energy commodities, particularly oil, increases the odds of high inflation. All this and the depreciation of the rupee might deter investors from investing in India. Edited excerpts:

Do you see more pain across global financial markets, given the Russia-Ukraine crisis? Which