MACRO 4 minutes to read

The end of independence for the RBI?

Kay Van-Petersen

Global Macro Strategist

Summary:  What does a less-independent RBI mean for the rupee?


The resignation of Reserve Bank of India governor Urjit Patel, who left citing 'personal reasons' following repeated pressure from the Modi government, has many onlookers concerned about the RBI's independence.

According to Bloomberg, "with state elections in progress and federal elections due next year, Modi’s officials have been pressing the RBI to lighten up. They want the central bank to transfer some of its reserves to the government, to relieve pressure on the public finances. They have called for gentler treatment of bad loans and for other kinds of regulatory forbearance. And they’ve made it clear that they’d prefer a less hawkish approach to monetary policy."

These developments place the future of the INR in jeopardy; click here for Saxo Head of APAC Macro Strategy Kay Van-Petersen's latest thoughts on the INR charts under what appears to be a retreat of central bank independence in India.

Click here to watch Van Petersen's analysis of the situation on YouTube.

You can access both of our platforms from a single Saxo account.

Disclaimer

Saxo Capital Markets (Australia) Pty Ltd prepares and distributes information/research produced within the Saxo Bank Group for informational purposes only. In addition to the disclaimer below, if any general advice is provided, such advice does not take into account your individual objectives, financial situation or needs. You should consider the appropriateness of trading any financial instrument as trading can result in losses that exceed your initial investment. Please refer to our Analysis Disclaimer, and our Combined Financial Services Guide and Product Disclosure Statement. All legal documentation and disclaimers can be found at https://www.home.saxo/en-au/legal/.

The Saxo Bank Group entities each provide execution-only service. Access and use of Saxo News & Research and any Saxo Bank Group website are subject to (i) the Terms of Use; (ii) the full Disclaimer; and (iii) the Risk Warning in addition (where relevant) to the terms governing the use of the website of a member of the Saxo Bank Group.

Saxo News & Research is provided for informational purposes, does not contain (and should not be construed as containing) financial, investment, tax or trading advice or advice of any sort offered, recommended or endorsed by Saxo Bank Group and should not be construed as a record of our trading prices, or as an offer, incentive or solicitation for the subscription, sale or purchase in any financial instrument. No representation or warranty is given as to the accuracy or completeness of this information. All trading or investments you make must be pursuant to your own unprompted and informed self-directed decision. No Saxo Bank Group entity shall be liable for any losses that you may sustain as a result of any investment decision made in reliance on information on Saxo News & Research.

To the extent that any content is construed as investment research, such content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, would be considered as a marketing communication.

Please read our disclaimers:
- Full Disclaimer (https://www.home.saxo/en-au/legal/disclaimer/saxo-disclaimer)
- Analysis Disclaimer (https://www.home.saxo/en-au/legal/analysis-disclaimer/saxo-analysis-disclaimer)
- Notification on Non-Independent Investment Research (https://www.home.saxo/legal/niird/notification)