BITMarkets Analyst: I believe it’s the right call from the RBI to keep rates steady for the time being
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Reserve Bank of India decided to keep the rates unchanged. Let's hear from Ali Daylami, Head of Data Analytics at BITMarkets.
FXMAG.COM: Could you please comment on the Reserve Bank of India decision?
Ali Daylami (BITMarkets): After six consecutive hikes, the RBI seems to be in pause mode and is monitoring the effect of global financial havoc on markets from afar. The central bank re-affirmed that it would hike rates once again, if necessary. It raised its key repo rate by 250 basis points since May 2022 to battle inflation and that’s not a minute figure.
In previous months, India’s economic activity held ground and began to show signs of weakening consumption
Ali Daylami (BITMarkets): In previous months, India’s economic activity held ground and began to show signs of weakening consumption. Notably, manufacturing activity is expanding at a slower place, and exports from India fell above 8% on a year-on-year basis in February, which highlights weakening global demand.
Ali Daylami (BITMarkets): Hence, I believe it’s the right call from the RBI to keep rates steady for the time being, as the future revelations surrounding banking & finance would be highly influenced by the degree of trust in which investors and corporations have in banks, and this degree remains unclear.
Ali Daylami (BITMarkets): The toxifying global banking and finance conundrums are causing investors to be more cautious of the omnipresent traditional financial systems we’ve grown to rely on. This has glorified cryptocurrencies as an alternative to fiat-denominated assets, as we at BITmarkets witnessed a spectacular surge in the prices of major cryptocurrencies and their trading activity.
