Uday Kotak reacted to hotter-than-expected US inflation in March which reduced hopes of a rate cut by the US Federal Reserve Warning of a global turbulence, the Kotak Mahindra Bank founder said higher US inflation and Brent crude oil at $90 will keep the interest rates higher globally. This could also impact India, Uday Kotak, who stepped down last year as managing director and chief executive office of the private sector lender, said.
Rate cut in the US could happen closer to US Presidential elections, he predicted.
What Uday Kotak said on US inflation and its impact?
In a post on X (formerly Twitter), Uday Kotak said, “US inflation is higher than expected. Postpones US rate cuts to later, closer to US Presidential elections, if at all. Brent oil now $90. Will keep rates higher for longer worldwide including India. Only wild card: China imploding economically. Get ready for global turbulence.”
What US inflation data in March showed?
US consumer inflation continued to rise in March as per government data owing to which chances of an early interest rate cut from the Federal Reserve reduced. The annual consumer price index (CPI) is at 3.5 per cent in March, up 0.3 percentage points from February which is slightly above expectations of a 3.4 percent rise. Monthly inflation came in at 0.4 percent, slightly above expectations as well.
Following the numbers being publishes, Wall Street stocks retreated while yield on 2- and 10-year US Treasuries jumped higher.
What US president said on inflation in the country?
US president Joe Biden said, “We have dramatically reduced inflation from nine percent down to close to three percent. We’re in a situation where we’re better situated than we were when we took office where inflation was skyrocketing, and we have a plan to deal with it.”
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