StanChart Sees Room for RBI to Lower Rates, Buoying Bond Inflows

Easing inflation is strong relief for the central bank: Sinha
Flows into India’s bonds will continue after index inclusion

Parul Mittal Sinha, Head of Financial Markets, India, and Head of Macro Trading, South Asia, Standard Chartered Bank, expects a ‘shallow RBI rate-cutting cycle’ of 25 basis points each in October and December. She speaks with Paul Allen on “Bloomberg Markets: Asia.”

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By Khushi Malhotra

July 5, 2024 at 7:03 AM UTC

This article is for subscribers only.

India’s central bank has room to lower interest rates, which may help intensify inflows into the nation’s bond market, according to Standard Chartered Plc.

“Core inflation is trending much below 4%, which is a strong relief for the central bank, while the repo rate is at 6.5%,” Parul Mittal Sinha, the bank’s head of India financial markets, said in an interview with Bloomberg Television on Friday.