Kotak said US inflation may dent hopes of interest rate cuts by the Federal Reserve and keep interest rates “higher for longer” even in countries like India.
Kotak’s comments came after data released in the US on Wednesday showed that inflation there rose more than expected in March. Year-on-year inflation increased 3.5%, the highest increase in six months, and higher than a 3.2% rise reported in February. “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,” Kotak said on X.
He predicted a period of “global turbulence” with China imploding economically the “only wild card”.
Oil prices have risen as investors brace for a worsening of the Middle East crisis, potentially involving Iran, the third-largest oil producer in OPEC.
