There are expectations that the US Federal Reserve may introduce a third round of quantitative easing (QE3). In an interview with CNBC-TV18, Pankaj Vaish, MD and head of markets, Citi, South Asia said although there is no direct correlation between Indian markets and QE3, but another round of quantitative easing will not be good for India.
QE3, Vaish said, will mean further rally in commodity prices and RBI will be forced into further tightening and that will create sell-off in equity markets. If RBI tightens another 75 bps, he said, growth may slip to 6%.Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
