Indian central bank told to be “more hawkish”

Reserve-Bank-of-IndiaAn investment firm has criticised the decision of the Indian central bank to leave the repo rate unchanged at 6%. Vik Mehrotra, chief executive of Venus Capital, an India-focused alternative investment firm, said the Reserve Bank of India (RBI)’s decision was “the wrong one given the increased inflationary pressure we are seeing”. “The RBI should be adopting a much more hawkish stance,” he said. “But it has been struggling to retain its independence of late, which sets a dangerous precedent.” Mehrotra warned that if political pressure was allowed to influence the setting of monetary policy, there could be “a serious negative effect” on the economy. The Monetary Policy Committee at the RBI kept the repo rate steady after its two-day meeting last week. It was the fourth straight occasion that the committee elected to leave the rate unchanged. ©2018 funds global asia

Executive Interviews

INTERVIEW: Giving peace a chance

Jan 11, 2019

As US-China tensions escalated in 2018, the leaders of the two economies met in Buenos Aires to agree a truce. Aidan Yao, senior emerging Asia economist at Axa Investment Managers, talks to Romil...

INTERVIEW: Operational challenges

Jun 09, 2018

Caroline Higgins of Northern Trust tells George Mitton about A-share inclusion, ETF Connect and why Cayman funds predominate in the region.



Jan 11, 2019

Changes to regulation, US-Sino trade tensions and further steps by China to open its capital markets were some of the topics discussed by our panel. Chaired by Romil Patel in Hong Kong.

SINGAPORE ROUNDTABLE: Optimism versus caution

Oct 23, 2018

The impact of financial technology, developments in Asian passporting and the promise of new markets in Thailand were among the topics discussed by our panel. Chaired by George Mitton in Singapore.