Policymakers will turn to financial repression

Policy tightening by the RBI is putting public finances stretched by the pandemic under further strain. While an increase in debt financing costs is inevitable, we expect the government and RBI to step up financial repression so that the full impact of higher policy rates is not felt by the government. India Drop-In (8th June, 10:00 ET/15:00 BST): We’ll be discussing India’s growth, inflation and policy outlook in the wake of the RBI’s June meeting, including what to do about the rupee. Register now.

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