Insight Magazine, July, 2023

Globally and also in India, one has witnessed an interesting first half of CY2023 with a multitude of events making the environment challenging & volatile. Central Banks around the world including the Reserve Bank of India continued to increase interest rates, in order to tame inflation. The excessive liquidity which formed the bedrock of growth in the recent years was significantly tightened, resulting in a fall in global demand and substantial reduction in security prices. This in turn led to a big impact in the Global Banking system and unthinkable chain of events, such as, the bankruptcy of Silicon Valley Bank and the merger of Credit Suisse with UBS during this period.