Financial markets on edge over fears of potential impact from tariffs, RBI says
Reserve Bank of India (RBI) has expressed concerns over the uncertainty clouding financial markets due to the current global economic environment, with a particular focus on the slowing pace of disinflation and the potential impact of tariffs.
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According to the RBI’s February bulletin, «financial markets remain on edge» as these factors create volatility.
As the global economy grows at a steady but moderate pace, with varying outlooks across different countries, emerging market economies (EMEs) like India are facing significant challenges, the central bank noted.
The RBI pointed out that EMEs are experiencing pressures from foreign portfolio investors (FPIs), alongside currency depreciation triggered by the strengthening US dollar.
In India, however, there are some positive signs, RBI said.
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