HSBC Global Asset Management (India) on Thursday said it's expects a pause from the Reserve Bank of India (RBI) with respect to interest rate hike.
In an interview to CNBC-TV18, Tushar Pradhan, chief investment officer, "If growth continues to struggle and inflation continues to be lower, I think interest rates clearly need to come down."
"The rate view that RBI provide will be data dependent. I think that is what the central banks all over the world do," he said.
According to Pradhan, private banks remain a challenging space as there is no valuation support and the next couple of quarters might be volatile for this sector.
However, he don't see any long-term issues for private banks, but valuations are challenging.