
What's Behind Central Banks' Gold Rush?
Central Banks globally have accumulated gold reserves this year at a pace not seen since 1967.
Central Banks globally have accumulated gold reserves this year at a pace not seen since 1967.
Against the backdrop of the strengthening Dollar Index that made its two-decade high in September 2022, the rupee managed to close the year at 82.61 to the US dollar, down from 74.29 at end of 2021.
The battle against inflation is not won yet. The fact that core inflation rates, which strip out volatile food and energy prices, have crept up across developed economies, says a CEBR report.
The year proved to be a roller-coaster, not only from the geo-political perspective but also from the point of view of asset management and economics.
US-led dollar bloc uses policy tightening to hit back at commodity producers led by Russia. Indian economy feels the heat.
Commodity prices don’t react to just interest rates but also to supply and demand changes. Higher interest rates mean slower growth prospects, says Prof Sarjanovic.
Morgan Stanley sees India’s inflation falling to 6.5% in FY23 from 7% estimated earlier, as it sees moderation in commodity price increases improving in the near-term
Reserve Bank governor Shaktikanta Das says policy measures could impact demand in the short-term but moderating inflation pressure is crucial at this stage.
The rating also balances India's external resilience from solid foreign-exchange reserve buffers against some lagging structural indicators.
Moody’s cautioned that growing inflation and rate hikes to control it will impede India’s demand recovery momentum.