India's overnight indexed swap (OIS) rates jumped after the Reserve Bank of India stressed bringing inflation down to its 4% target, which could push the possibility of any interest rate cuts to next year and not before, at least three analysts said.
"The OIS market had factored in a rate cut for December, and for sure these expectations have been pushed back by a quarter," said Vijay Sharma, senior executive vice president at PNB Gilts.
"Though the market is expecting a thin chance of rate cut in February 2024, my own view is that... the cut will be delivered only in April," he said.
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