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The Economic Times

Economy / The Economic Times

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FCNR inflows may delay rate hikes, but banks face margin pressure: Report

Foreign currency inflows have eased financial conditions for the Reserve Bank of India. This temporary relief allows the central bank to delay interest rate hikes. However, rising inflation and global interest rates present renewed risks. Increased liquidity has boosted credit growth, but it is mostly for short-term needs. Systematix expects this calm to be fragile amid future economic pressures.

30 Aug 2026 5:22 pm