India's Central Bank Rejects Rate Hikes to Defend Rupee, Prioritizes Inflation Control on May 22

GateNews
According to sources familiar with India's central bank thinking, on May 22, the Reserve Bank of India rejected interest rate hikes as the optimal tool to defend the rupee, instead prioritizing inflation control as the core basis for monetary policy decisions. The RBI has unutilized policy tools under consideration, including a dollar deposit scheme for non-resident Indians and adjustments to bond investor taxation. The central bank has no immediate need to raise rates.
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