 "RBI, Reserve Bank of India")
Before the Union Budget projections for financial year 2022-23 (FY23), we had pencilled in a formal start of monetary policy normalisation in the forthcoming February review, with a small rise in the reverse repo rate. Now we are not sure, leaning toward the view that RBI will choose to postpone the formal normalisation start till April.
India will face much tighter external financial conditions in 2022. Many of the G-10 central banks are expected to start raising their policy rates and roll down their balance sheets. The US Fed has been communicating an aggressive tightening, although recent data prints suggest that
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