The end of independence for the RBI?

The resignation of Reserve Bank of India governor Urjit Patel, who left citing 'personal reasons' following repeated pressure from the Modi government, has many onlookers concerned about the RBI's independence.

According to Bloomberg, "with state elections in progress and federal elections due next year, Modi’s officials have been pressing the RBI to lighten up. They want the central bank to transfer some of its reserves to the government, to relieve pressure on the public finances. They have called for gentler treatment of bad loans and for other kinds of regulatory forbearance. And they’ve made it clear that they’d prefer a less hawkish approach to monetary policy."

These developments place the future of the INR in jeopardy; click here for Saxo Head of APAC Macro Strategy Kay Van-Petersen's latest thoughts on the INR charts under what appears to be a retreat of central bank independence in India.

Click here to watch Van Petersen's analysis of the situation on YouTube.