Page 150 - BFSI CHRONICLE 3092022.indd

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BFSI Chronicle, 11 Edition September2022
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 *India real GDP growth remains highest among  *Central banks hiking rates despite growth
major economies* sacrifice*
 *GDP growth, kharif sowing seen supporting  *Advanced, emerging economies confronted
demand in Oct-Mar* with slowing growth*
 *Investment demand is also picking up*  *Emerging markets face challenge of currency
depreciation*
 *Rural demand also gaining gradually*
 *Emerging markets face challenges of growth,
 *Farm sector remains resilient* inflation*
 *Resilient non-oil, non-gold imports show *FINANCIAL MARKETS :*
robust demand*
 *All segments of financial markets in turmoil*
*FX, EXTERNAL SECTOR :*
 *Nervous investor sentiment have triggered
 *Movement of rupee has been orderly compared flight to safety*
to other nations*
 *Nervousness in financial markets to have
 *Rupee fared better than many reserve implications on econ*
currencies, Asian peers*
 *Expect system liquidity to go up on govt
 *Rupee freely floating currency; exchange rate spending*
mkt determined*
 *Liquidity remains in surplus*
 *Don’t have any fixed level for exchange rate
in mind*  *Weighted avg call rate has risen 196 bps so far
FY23*
 *Our actions in FX mkt helped restore investor
confidence*  *Surplus liquidity moderated to 2.3 trln rupees
Aug-Sep*
 *FX interventions based on continued
assessment of situation*  *Large govt spending Oct-Mar can increase
system liquidity*
 *Arduous to provide guidance in uncertain
environment*  *Will conduct fine-tuning ops to inject, absorb
liquidity*
 *FX reserve umbrella continues to be strong*
 *Constantly monitoring liquidity situation*
 *Global economy outlook continues to be bleak*
 *Drawdown of excess CRR, SLR holding may
 *Global economy is in the eye of a new storm* also augment liquidity*
 *Pandemic, Ukraine war have produced enough  *To conduct only 14-day VRRR ops going
econ conflict* forward*
 *Aggressive monetary move by global banks  *Merged 28-day VRRR with 14-day VRRR on
3rd headwind to econ* fall in liquidity*
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