If inflation rises, the RBI hikes interest rates. If it goes down, the RBI does nothing. Why? For that, you need to know the RBI’s real job.
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With a strong economy and falling inflation, RBI keeps rates where they are. Automobiles don’t sell, services exports fall, but power generation stays robust. And more.
No alarms and no surprises last week. Inflation stayed sticky, rural wages saw mild real growth, and merchandise trade remained steady. India’s forex reserves zoomed. US inflation refused to budge lower, while Indonesia is in trouble.