“Supply-chain disruptions will persist throughout 2022 prolonging delivery delays and goods shortages, keeping inflation elevated, and prompting firms’ recalibration of supply-chain management. Monetary tightening in advanced economies, kicked off by the Bank of England in October and soon to be followed by the US Federal Reserve, will add upward pressures for major currencies and increase financing costs in the coming months In India, recovery in domestic economic activity is yet to be broad-based prompting the Central Bank to keep policy rate unchanged for the 10th time. While this raises depreciation pressures on rupee, high FX reserve buffers and modest level of the current account deficit provide a cushion against external shocks. Reopening of the economy as the 3rd wave moderated as quickly as it surged is likely to support traction in business continuity and economic activities” said Dr Arun Singh, Global Chief Economist, Dun & Bradstreet.
Comments from Dr Arun, Global Chief Economist, Dun & Bradstreet
