RBI Policy expectations: Steve Brice of Standard Chartered Wealth foresees no change in rates

| RBI can adjust cash reserve ratio to manage liquidity, say economists

Brice noted that the first rate cut from the US Federal Reserve is now likely in June instead of March as there are some concerns that inflation may not come down as quickly as anticipated. He also highlighted the short term inflation upside risks due to the ongoing tensions in the Red Sea.

The US Federal Reserve's Federal Open Market Committee (FOMC) maintained status quo on rates in January. The Fed rate that ranges between 5.25% and 5.5% is at an over two-decade high.

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Brice also shared his outlook on the Chinese market. About $7 trillion of value has been wiped off China and Hong Kong equities since their peaks in 2021 as investors factor in risks ranging from geopolitical tensions to sluggish consumption.

. "We're neutral Chinese equities. We were worried about the fundamentals; the headwinds seem to be significant from the growth, regulatory, and geopolitical sides. But valuations balance that often this extreme pessimism. So, to get a very long term bounce, like six to 12 months past in the Chinese stock market, we need to see further policy actions, inflation bottoming out and recovering," Brice said.

For the entire interview, watch the accompanying video