India’s recent interest rate cut to a five-year low was a response to cooling inflation, analysts said.
“If you buy investment grade debt, it looks like the Fed will be in your corner,” said David Buckle, head of quantitative research at Fidelity.
Growing concerns in China and other emerging markets could lead to “a prolonged deceleration” and have a “severe knock-on effect across the EU and the US”, according to the most recent report on risk by the Economist Intelligence Unit.
When the People’s Bank of China imposed a 1% reduction on the required reserve ratio – the amount of cash reserves a bank must hold – on 20 April, bringing the rate down to 18.5%, it triggered a wave of positive sentiment. However, Rothman, investment strategist at Matthews Asia, believes that the hopes of increased […]
India’s central bank is likely to keep interest rates on hold after it cut rates two times since January, according to Alliance Bernstein.
In Asia, the bank had a dramatic flow into fixed income mandates in the second half due to client uncertainties in regards to the looming US rate hike.