Reserve Bank of India (RBI) Governor Shaktikanta Das chaired a meeting of the sub-committee of the Financial Stability and Development Council. In the meeting, major developments in the global and domestic economy as well as in various segments of the financial system were reviewed.
India's foreign exchange reserves slumped by over $2 billion in the week ending August 12, as the Reserve Bank of India intervened to shore up the rupee and keep the currency below 80 per dollar.
The Reserve Bank of India is expected to raise interest rates today for the third time since the beginning of the current financial year to bring down inflation from above the upper threshold of the central bank's target since January. The focus shifts to the RBI's growth and inflation outlook and the tone of the monetary policy path.
The Reserve Bank of India will likely hike interest rates for the third time since the current fiscal year began in April. But the central bank's dilemma has multiplied, with pressing economic risks becoming a deeper concern for policymakers.