In its September monthly economic review, the Indian government highlighted that the inflationary tendencies are pandemic induced and transitory.
Additional takeaways
“Volatile prices of crude oil, upward-bound prices of edible oils & metal products to pose concerns.”
“Growth in personal loans augurs well for improved consumption spending in festive months.”
“Timely central bank interventions in foreign exchange market helped in preventing undue appreciation of the rupee.”
“India well-placed on the path to swift recovery with growth impulses visibly transmitted to all sectors.”
Market reaction
Despite the upbeat remarks from the Indian government, the rupee sees no respite, as USD/INR flirts with six-month highs near 75.25, at the time of writing. The spot is up 0.12% on the day.
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