The key question is how much could domestic interest rates rise with normalising liquidity in the given growth-inflation settings? The timing is significant for understanding this
Mihir Vora, Director and Chief Investment Officer, Max Life in an interview to CNBC-TV18 shared his views on market fundamentals and his expectation from the Reserve Bank of India monetary policy today.
"We are not expecting any action on the rates from RBI, but there is a very strong case for RBI to at least address excess liquidity in the system", Amandeep Chopra, Group President and Head of Fixed Income at UTI MF told CNBC-TV18.
The window is open for China's central bank to raise bank reserve requirement ratios or use other tools as early as this week to mop up excess liquidity, which has seen money rates plunge from multi-year peak hit last month.