Baroda BNP Paribas Mutual Fund CEO Suresh Soni says India is past its inflation peak. Though still above its target range of 2-6 percent, he expects the Reserve Bank India to go slow on hikes and expects the rate cycle to peak early next year.
The RBI’s monetary policy committee is holding its last meeting of 2022 and will share its decisions on December 7.
With global commodity prices cooling and inflation peaking, any change in stance on rates will be a positive trigger for bond and equity markets, says Soni, who has more than 25 years of experience managing assets.
In an interview to Moneycontrol, he says the banking sector is in a sweet spot and will garner greater investor interest. Edited excerpts: