A $25 Billion Fund Manager Says Market is Wrong on RBI-Hike Bets
- Markets are mispricing quick rate hikes by RBI, Says Dangi
- RBI to keep benchmark interest rate low to avoid disruptions
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The growing market wagers about the most aggressive interest-rate tightening in India of any nation in Asia are wrong, according to Aditya Birla Sun Life AMC.
Five-year interest-rate swaps jumped to 5.42% on March 8, the highest in more than a year, reflecting surging expectations of a tighter monetary policy, and were at 5.32% on Monday. “Markets are mispricing quick rate hikes,” said Maneesh Dangi, co-chief investment officer at Aditya Birla.