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Jun 18, 2018
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Why Urjit Patel is anxious about Fed tightening
A day before the June monetary policy meeting, RBI Governor Urjit Patel sprung a surprise by writing a column in The Financial Times, asking the US Federal Reserve to go slow with its balance sheet- shrinking programme.Why did Patel pen the article? Is India’s external debt situation getting difficult? We looked for some answers in the Centre’s external debt report.Data show that overseas finance, especially that of Indian companies, is getting difficult to access. Some of the external debt ratios are also not in the comfort zone.Patel stated in the FT article that the Fed had dealt a double whammy on global markets by — one, commencing its balance sheet reduction in October 2017, and two, bloating its deficit sharply through the tax cuts announced by the Trump regime.
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https://www.pressreader.com
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