Capital trouble

While the higher 9.8% inflation for August, up from 9.2% in July, has probably sealed the deal in favour of a 25 bps rate hike on Friday, the news coming out continues to get worse. After the IIP data which showed a considerable trending down, comes a study from RBI which suggests the combination of rate hikes and an uncertain economic environment—both domestically as well as globally—has hit investment levels quite badly.

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