India’s problem of plenty on the external sector – too many dollars coming into the country relative to those going out – appears to be coming to an end.
After nearly two years of ultra-accommodative monetary policy, the US Federal Reserve (Fed) at its December meeting announced it will double the pace of its balance sheet tapering and end its net asset purchases by mid-March 2022, three months ahead of its earlier schedule. The median projections also show more front loaded rate hikes in 2022 (three hikes) and eight cumulative hikes by the end of 2024.
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Views expressed above are the author’s own.
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Read More: 2022 won’t see 2013-style troubles in the exchange rate and markets.