Interact with CNBC-TV18: Prabhat Awasthi does not think Fed will raise rates

A Moneycontrol boarder Ritu from Delhi asked whether the US Federal Reserve will raise rates soon and how the global markets will react if it does happen. Prabhat Awasthi, head of equity research and managing director, India, Nomura Financial Advisory & Securities feels the Fed has been very clear that they will keep the rates controlled, where they are – at low levels for while now. It is the monetary accommodation which is going off. These are two different things. So rates are working at the short end of the curve and pre-purchases etc. You have seen 10-year bond yields harden somewhat.

He doesn’t expect a rate hike but thinks monetary accommodation will continue to come down as the US economy improves.