ECB’s Cipollone Backs Digital Euro as Europe Pushes for Payment System Independence 
RBA Expected to Raise Interest Rates by 25 Basis Points in February, ANZ Forecast Says 
Thailand Economy Faces Competitiveness Challenges as Strong Baht and U.S. Tariffs Pressure Exports 
U.S. Prosecutors Investigate Fed Chair Jerome Powell Over Headquarters Renovation 
Bank of Korea Expected to Hold Interest Rates as Weak Won Limits Policy Easing 
Jerome Powell Attends Supreme Court Hearing on Trump Effort to Fire Fed Governor, Calling It Historic 
China Holds Loan Prime Rates Steady in January as Market Expectations Align 
The Reserve Bank of India’s (RBI) dovish stance and the ongoing tax review will likely send Indian share prices even higher, supportive of the INR amid continued risk-on sentiment, according to the latest research report from Scotiabank.
India’s aggregate loans extended by the scheduled commercial banks rose INR216.45 billion to INR97.88 trillion as of October 11 from INR97.67 trillion a fortnight ago. On an annual basis, the nation’s bank lending growth slowed to 8.8 percent from 14.4 percent the same period a year ago, casting a shadow on India’s economic growth outlook in the months ahead.
"In our view, it will prompt the RBI to roll out more monetary easing measures to boost credit supply and revive growth in Asia’s third-largest economy," the report further commented.
In addition, The Economic Times reported Tuesday that the Prime Minister's Office (PMO) and the Finance Ministry are working on measures which may include dividend distribution tax (DDT) to be scrapped and a review of existing slabs and holding period of long term capital gains (LTCG), short term capital gains (STCG) and securities transaction tax (STT).
The latest primary-level phone call between the US and China could take optimism for reaching a partial US-China trade deal to the next level, sustaining risk appetite going forward.
Meanwhile, foreign investors could add to their positions in the so-called carry trade given persistent falls in the implied vols of USD/INR, Scotiabank further noted in the report.
