# Rupee Fall: India's shadow banking scare could derail its robust growth story

> Reuters reports that India's shadow banking sector is under strain after IL&FS defaulted on debt and stopped paying contractors, including on a Srinagar road tunnel project. The RBI has already raised its policy rate by 50 basis points to 6.50% this year and was expected to hike again to contain inflation from the sharp rupee fall.

- Date: 2018-09-27 · published 2018-09-27T12:00:00.000Z
- Category: macro · region India · magnitude low
- Page: https://feedsoft.ai/events/63325-rupee-fall-india-s-shadow-banking-scare-could-derail-its-robust-growth-story
- Commodities: [Indian Rupee (INR per USD)](https://feedsoft.ai/c/USDINR.md)

## Why it matters

A credit squeeze and further rate hikes could slow Indian economic growth and domestic demand for livestock products, weighing on feed demand, though the direct commodity price link is modest.

## Read by commodity

- USDINR: bullish ▲

## Sources

- economictimes.indiatimes.com: https://economictimes.indiatimes.com/news/economy/finance/indias-shadow-banking-scare-could-derail-its-robust-growth-story/articleshow/65977219.cms

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Data from Feedsoft AI (https://feedsoft.ai/). For information only; not investment advice.