The recent commentary from the US Federal Reserve has infused substantial volatility into global financial markets, with large spillovers and knock-on effects on emerging market economies (EMEs), Reserve Bank of India (RBI) governor Shaktikanta Das said on Monday. “This episode is yet another demonstration of the point made in my media interview on August 23, 2022, that while forward guidance can be a useful policy instrument in an accommodative monetary policy phase, it can be quite difficult to provide coherent and consistent guidance in a tightening cycle,” Das said at an event hosted by the Fixed Income Money Market and …
