Ananth Narayan, Head-Financial Markets, Standard Chartered Bank said changing the stance from accommodative to neutral was a surprise and not expected by the market and so one is likely to see a sell-off in bond markets
With growth remaining challenged in developed markets and central banks staying put, it would create a favourable backdrop for EM fund flows, says Arvind Sanger, Founder and Managing Partner, Geosphere Capital.
With USD 70-80 billion net long rupee positions having built over the last few months, it makes a strong case for volatility and vulnerability, feels Ananth Narayan of Standard Chartered Bank.