Asia’s Biggest Rate-Hike Bets Mount in India as Swaps Surge
- Five-year swaps have jumped by most since 2013 taper tantrum
- India swaps signal fastest Asia tightening: Standard Chartered
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The global economic recovery is fueling speculation central banks will soon be shifting into tightening mode -- nowhere more so than India.
Five-year interest-rate swaps jumped 63 basis points in February, the biggest advance since the 2013 taper tantrum, reflecting growing expectations of a tighter monetary policy. Swap rates signal India will see the most rapid tightening of any nation in Asia, according to Standard Chartered Plc. Fears of a resurgence in inflation driven by rising oil prices is adding to the speculation.