Rate cuts are unlikely in 2023 as inflation appears to be more persistent this time, believes Amandeep Chopra, group president and head-fixed income, UTI Asset Management Company. In conversation with Abhishek Kumar, Chopra says rate cuts can be a possibility this year only if inflation dips below 5 per cent and the economic growth rate weakens to sub-5 per cent. Edited excerpts:
The rate-hike cycle is expected to end soon. What will be your strategy?
The thing to look out for this year is how long central banks keep rates unchanged once they achieve the terminal policy rate. Also, what markets are pricing in as regards the next phase of the rate cycle. The headline inflation rate has started to come down, but there are concerns about sticky core inflation.
TO READ THE FULL STORY, SUBSCRIBE NOW NOW AT JUST RS 249 A MONTH.
Subscribe To Insights
Key stories on business-standard.com are available to premium subscribers only.Already a BS Premium subscriber? Log in NOW
What you get on Business Standard Premium?
- Unlock 30+ premium stories daily hand-picked by our editors, across devices on browser and app.
- Pick your 5 favourite companies, get a daily email with all news updates on them.
- Full access to our intuitive epaper - clip, save, share articles from any device; newspaper archives from 2006.
- Preferential invites to Business Standard events.
- Curated newsletters on markets, personal finance, policy & politics, start-ups, technology, and more.
Tata in talks to buy majority stake in UTI AMC from 4 PSU finance entities
UTI AMC's shares soar 15% on reports of Tata AMC eyeing 45% stake
UTI AMC falls 5% as co denies reports of stake sale to Tata Group
Not part of any negotiations': UTI AMC on Tata acquisition reports
Investors could continue to allocate to equity funds, says UTI AMC CIO
Our becoming bank rests on regulatory intent for NBFCs: Piramal Capital MD
Will raise Chennai unit output to curtail waiting period: BMW's Pawah
By March, we'll be closer to pre-Covid levels: ESAF Small Finance Bank MD
Margins to improve by 200-250 bps next quarter: LTIMindtree CEO
Marginal growth in demand expected in 2023: JSW Steel's Seshagiri Rao