The bears are here for India’s stock markets. While a full-scale massacre isn’t necessarily imminent, investors should brace for a nasty mauling.
In a surprise move, the Reserve Bank of India raised interest rates Wednesday for the first time in more than three years by 0.4 percentage points to 4.40%. The decision was a belated acknowledgment of inflationary pressures from higher fuel and food prices, continuing supply shocks, and the reopening of the economy after multiple waves of Covid-19. The fact that India imports more than 80% of its oil doesn’t help.
Headline inflation in March rose to a 17-month high of 6.95%, well above the
RBI’s
2%-6% target range for a third month. India’s central bank has lagged behind most other major central banks in raising rates. More increases will likely…
