Risk of BoP stress remains high: Chetan Ahya

The risk of balance of payments (BoP) stress remains high, says Chetan Ahya, Morgan Stanley.

May 23, 2012 / 08:58 IST

Chetan Ahya, Morgan Stanley said, "The risk of balance of payments (BoP) stress remains high. Unless the govt initiates major policy action to cut its spending including subsidies and/or international crude oil prices decline sharply, India will remain exposed to any potential slowdown in capital inflows. That would increase pressure on the exchange rate, which in turn would keep the domestic cost of capital high."

first published: May 23, 2012 08:24 am

Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!

Advisory Alert: It has come to our attention that certain individuals are representing themselves as affiliates of Moneycontrol and soliciting funds on the false promise of assured returns on their investments. We wish to reiterate that Moneycontrol does not solicit funds from investors and neither does it promise any assured returns. In case you are approached by anyone making such claims, please write to us at grievanceofficer@nw18.com or call on 02268882347