In about a week, the Indian government will have presented its budget for 2022-23, and a week later, the Reserve Bank of India (RBI) will announce its monetary policy decision. That will be its last meeting for the current financial year. What is the global backdrop to these two events?
It has been an interesting month already. Financial markets globally—particularly equities—are in a swoon. Bond yields are up and so are equity yields. While it is not clear why exactly US stock investors are nervous, it may be worries that the Federal Reserve would either hike interest rates sufficiently such that America’s inflation rate collapses, or not do so, leaving inflation raging.
The real economic growth rate in China in the last quarter of the calendar year 2021 dropped to around 4%, and its growth rate for the full year was around 8%. The low-base effect played its part there. China…
