Price Shock Has This Indian Debt Manager Expecting Hawkish RBI
- ICICI Prudential Life prefers cash before RBI’s August meeting
- Normalization may begin by draining liquidity, says Srinivasan
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India’s central bank may signal the start of a normalization of its accommodative monetary policy at its August meeting amid accelerating inflation and risks from surging oil prices, according to ICICI Prudential Life Insurance Co.
“We need to prepare ourselves for a rise in interest rates, starting with a rise in the reverse repo rate,” said Arun Srinivasan, head of fixed income at the company, one of India’s top private life insurers, that manages funds worth 2.14 trillion rupees ($29 billion) “The signs point to it.”