Your Money – Inflation impact: Once RBI hikes interest rates, returns from debt fund to dip
Equity markets are within striking distance of all-time highs. The slow down fears about the effects of the Covid-19 pandemic have subsided. Commodity prices including food and fuel prices have increased significantly and are still rising. However, it is also a majority view that current phase of high readings of inflation is likely to be transitory. Monetary conditions like repo rates and systemic liquidity have to be maintained at abnormally accomodatory levels to support the real economy. But what if the central banks are wrong and inflation, instead of moderating, actually goes up?
Inflation risks Theorists often compare the current economic conditions to those of a previous cycle, trying to devise strategies to survive or benefit in the
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