De-stressed India!
The Reserve Bank of India (RBI) recently released the half yearly Financial Stability Report (FSR). A key highlight of the latest FSR is RBI’s confidence in the resilience and sustainability of growth in the Indian economy. The report notes “heightened risks and uncertainties” in the global economy and financial system, while highlighting the “remarkable resilience” and receding risks of a hard landing. It also cautions, “While near-term prospects are improving, pitstops in the last mile of disinflation, high public debt, stretched asset valuations, economic fragmentation, geopolitical tensions, climate disasters and cyber threats present downside risks. Emerging market economies (EMEs) remain vulnerable to external shocks and spillovers.” Regardless, the RBI finds the Indian economy on a strong footing. It notes, “Strong macroeconomic fundamentals and a sound and stable financial system have supported the sustained expansion of the Indian economy. Moderating inflation, a strong e...