Economics
RBI Sees India’s Current-Account Deficit Staying Within 3% of GDP
- Inflation elevated, containing price expectations to be focus
- Front-loading rate actions to keep expectations anchored
Shaktikanta Das
Photographer: Dhiraj Singh/BloombergThis article is for subscribers only.
India’s central bank expects the country’s current account deficit to stay within a limit it considers sustainable amid softening global fuel, food and fertilizer prices while portfolio flows and exports pick up.
“Overall, the current account deficit is expected to be within 3% of gross domestic product,” the Reserve Bank of India said in its September Bulletin released Friday. “With portfolio flows returning and foreign direct investment remaining strong, this order of deficit is eminently financeable.”