0

0

0

0

0

0

0

0

0

videos | IST

Swap market expects 25 bps rate hike by RBI in October and December, says B Prasanna

The swap market is pricing in two 25 basis rate hikes in the October and December Reserve Bank of India(RBI) monetary policy, said B Prasanna, head, global markets group, ICICI Bank.
He said the primary concern for the bond markets are the soaring crude prices and the rupee weakness. "Along with this is the whole emerging market contagion which is spreading across countries and concerns in the bond markets whether RBI will do something in terms of interest rate defence," he said.
"While the government and regulator may not do things immediately which are contrary to the moves happening globally but one could see some tinkering with borrowing programme and whether they want to go towards short end rather than long end," said Prasanna.
With regards to rupee, he said large part of the clients feel that the rupee could range between 70-72.50/USD but it also depends on where crude prices are headed and what the movement of emerging market currencies is.