BOJ Holds Rates at 1% as Inflation Outlook Eases, October Rate Hike Still Possible 
BSP Sees Philippine Inflation Easing, Keeps Policy Options Open 
U.S. Public Debt Tops $40 Trillion for First Time 
Gold Tops $4,500 as Dollar Slides After Treasury Bond Move 
China Set to Hold Benchmark Lending Rates Steady for 15th Month 
Wall Street Gains as Treasury Yields Fall, Fed Minutes Signal Inflation Risks 
FxWirePro: Daily Commodity Tracker - 21st March, 2022 
Add as a preferred source on Google
After the Reserve Bank of India (RBI) shifted to a neutral stance from accommodative in February, the market began to contemplate the idea that the next RBI move could be a hike. Since February however, inflation has moderated further to just 3 percent y/y in April – well below RBI’s forecast of 4.75 percent for the current FY2017-18.
The next RBI meeting is scheduled for June 7. It is widely expected that central bank will leave policy unchanged at 6.25 percent. The key things to watch will be its views on the strength of INR and new measures to drain excessive liquidity. If such measures are introduced, the RBI may be more adventurous in FX intervention to mitigate INR appreciation pressures.
"We believe RBI has been reticent to intervene aggressively in the FX market because any unsterilized intervention (i.e. RBI purchases of USD without issuing bonds to soak up the liquidity injection) will only exacerbate the current excess liquidity situation due to last year’s demonetization," Commerzbank commented in its latest research report.
