Economic Buzz: Ongoing conflict continues to weigh on the balance between growth and inflation, prompting some central banks to hike rates, says RBI
Mumbai, Sept. 28 -- US Federal Reserve's policy rate hike exerted upward pressure on US Treasury yields in September so far (till 21st), despite the announcement of larger long-end buybacks intended to provide temporary relief, RBI noted in its September bulletin. The US dollar index weakened in August and early September, supporting emerging market currencies. Subsequently, it strengthened, supported by safe haven demand and the US Fed's hawkish stance. Foreign portfolio inflows to emerging markets remained positive for the second consecutive month in August, amidst demand for emerging market debt despite higher long-term US Treasury yields. The ongoing conflict continued to weigh on the balance between growth and inflation, prompting some...
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