India's Currency Conundrum: When Inflation Trumps the Rupee The Reserve Bank of India (RBI) has taken a surprising stance on interest rate hikes to defend the rupee, prioritizing inflation control over currency stability.
This unexpected twist raises more questions than answers about the RBI's strategy and its impact on the Indian economy.
At odds with market expectations, the RBI appears reluctant to raise interest rates to shore up the rupee, which has been battered by an energy price shock linked to the Iran conflict.