June 6, 2018

Why India's Surprise Rate Hike May Lead To The Next Emerging Market Crisis

Following RBI governor Urjit Patel's Op-ed earlier this week, in which he lamented the growing dollar shortage as a result of the Fed's ongoing tightening, it is perhaps not surprising that this morning India became the latest central bank to "surprise" markets with an unexpected rate hike as the country did everything it could to if not prevent, then delay the capital outflow Patel hinted at.

And it was a "surprise", because only a third, or 14 of 44 economists surveyed by Bloomberg, predicted the RBI would hike the repurchase rate by 25 bps to 6.25%, as it did, with the rest predicting an unchanged announcement.

Read more at https://www.zerohedge.com/news/2018-06-06/why-indias-surprise-rate-hike-may-lead-next-emerging-market-crisis

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