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The Economic Times

Economy / The Economic Times

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RBI rate hike will not stem outflows, leaving central bank in a bind

Indias first RBI rate hike in four years may not stop record capital outflows or ease pressure on the rupee, which has fallen 7% this year. Foreign investors have withdrawn $30 billion from Indian equities, while rising hedging costs and narrowing India-US rate differentials threaten the appeal of Indian stocks and bonds amid higher global yields, oil prices and inflation.

8 Oct 2026 1:40 pm