The Reserve Bank of India (RBI) is seemingly following a course different from those of other global central banks. A surge in inflation in major economies is forcing the others—US Federal Reserve, European Central Bank, Bank of Japan, and Bank of England—to withdraw their emergency support amid economic stress caused by the covid-19 outbreak. Analysts at Morgan Stanley have noted that the world’s top central banks are about to embark on the largest quantitative tightening in history, sucking out $2.2 trillion from the global financial system over the next 12 months.
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