Vikas Gupta, CEO & Strategist, Omniscience Capital, also pointed to persistent inflationary pressures in both economies and said another US rate hike was possible before the end of 2026.
“India’s inflation has also been persistent and above 4% with likely upward pressure. The high oil prices and weak INR combined will likely make the RBI consider a rate hike in the next meeting,” Gupta said.
However, he said an immediate RBI rate increase was not certain, adding that the central bank could choose to adopt a tougher stance first and raise rates at a subsequent meeting.