Fearful Symmetry sees India risking a hard landing

Fearful Symmetry was disappointed that the RBI saw fit to raise interest rates at its mid-quarter review on September 16. He moved beyond disappointment into the realms of despair when the Bank raised rates again in October. The tone of the accompanying statement echoes that of September and shows a similar lack of regard for the potential vulnerability of activity to a late cycle policy sledge hammer. Rates are now 1¾% higher than they were in April. The real economy has not nothing but decelerate since that time. So too for the pulse of inflation. A month ago Fearful Symmetry spoke of“puritanical stubbornness up to and including the potential for self harm”. That sentiment carries over, with yield.

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