India's Central Bank Makes Its First Move | Part 2

Why the Rupee Keeps Falling | India's Central Bank Makes Its First Move | Part 2

Last week the central bank chose to do nothing dramatic. This week the government changed the rules instead — to pull foreign money in, rather than spend its savings defending the currency. A few days ago we looked at why India's currency, the rupee, keeps sliding — and at the central bank's surprising response: it did nothing dramatic. It left interest rates unchanged and defended the currency mostly with reassuring words. The real signal to watch, we said, was whether the authorities would shift from talking to actually spending. This week they did something — but not quite either of the moves we were watching for.

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