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OIS climb: OIS climb hints at rate hike now, crushes hopes of a cut

Given the declining trajectory of local inflation - particularly core inflation - it is unlikely that the Reserve Bank of India would turn to rate hikes after maintaining a status quo on rates for more than a year. What the rise in swap rates show more than anything else is heightened risk aversion and the damage done to rate cut expectations by the abrupt ratcheting up of tensions in the Middle East. ....

Dipanwita Dutta , Abhay Garg , Punjab National Bank , Middle East , Overnight Index Swap , Reserve Bank , Mumbai Interbank Outright Rate , Ois Climb , Middle East Tensions , Interest Rate Risk , Brent Crude Futures , Geopolitical Scenario , Reserve Bank Of India Rbi , Pnb Gilts ,