For next six months, no change in interest rates expected: Mahendra Jajoo

economictimes.indiatimes.com:

Mahendra Jajoo, CIO, Mirae Asset Management, says “we have to wait till at least June ‘24 to see what we can expect because of the simple reason that now in February, we are not going to have a full year budget, it will be a vote on account. Then when the new government comes and the full year budget is presented in June, July, that is the time we can say if there is an environment building up for a rate cut. I would say for the next six months, first half of 2024, no change in the policy rates, then I think the room opens up if the inflation comes down for a rate cut by the RBI in the second half of 2024.”
In June 2023, we all were anticipating or hoping for rate cuts to happen. But then we saw there was geopolitical tension and various triggers and data also that turned it around. And now the rate cut scenario has gone to 2024, maybe six months, eight months down the line depending on the data again. How would you analyse the first six months of 2023?
Mahendra Jajoo: As we saw in 2023, things have been very volatile and as you rightly explained, the sentiments have gone from extremely negative to extremely positive and that is also a backdrop which the investors must consider while getting affected by the volatility.

So, we had started the year with the feeling that the economy is going to get into recession, especially the US economy. The high interest rates might have an impact on the banks.