Goldman Sachs said that the Central Bank of India is to strengthen the local currently to help decrease the cost of imports and stoke inflation without the need to hike interest rates as the central bank believes the current rates are appropriate to battle waning global demand.

It is worth mentioning that the increase in inflation rates will cost India a lot since the depreciation of the rupee alongside surging prices. With a stronger rupee, India has better chances to purchase crude oil and it gives the central bank more time to delay an interest rate hike in an attempt to bolster the economy.