Goldman Sachs India Financial Conditions Index (GS India-FCI)
Business Standard points us to the launch of a very interesting index: Goldman Sachs India Financial Conditions Index (GS India-FCI) - as a comprehensive indicator to understand and forecast India’s business cycle rather than just interest rates.
GS India-FCI incorporates interest rates, money, exchange rates and the stock market as important transmission channels of monetary policy, according to a note by Goldman Sachs.
Weightage of various components of the FCI are interest rates (55%), money supply (29%), exchange rate (12.5%) and stock market (3.5%).
Wonder how the recent series of rate hikes by the RBI will show up in the index.
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