India’s central bank, the Reserve Bank of India, is not favoring interest rate hikes to protect the rupee. Instead, it is exploring other measures. Inflation, not the currency, will guide borrowing cost decisions. Policymakers are considering options like dollar deposit schemes and tax adjustments. The RBI believes rate hikes would harm growth without significantly stabilizing the rupee.
Originally published by The Economic Times https://economictimes.indiatimes.com/markets