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SBICAPS EcoCAPSule May’26: Inflated Prices, Deflated Hopes

This volume of the EcoCapsule discusses the latest happenings in the global and domestic economy in light of surging commodity prices, which are a fallout of the War. It notes that global Central Banks are being pushed towards hike, and wonders if they can time it well enough not to disturb growth while stifling inflation. Further, it ponders over the triple balance sheet advantage and whether the same could transition to a twin deficit problem. Finally, it highlights stellar bank credit growth and offers a structural solution in times of limited deposit growth, for the same to continue.

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