Veteran banker and Kotak Mahindra Bank founder Uday Kotak has warned of global turbulence after the release of higher than expected US inflation data for March. The US inflation has now eroded hopes of an early rate cuts by the Federal Reserve.
In a post in social media site X, Uday Kotak said that higher US inflation and Brent crude oil at $90 will keep the interest rates higher globally, including in India, for longer.
He further predicted that rate cuts in US may happen closer to the US presidential elections.
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The US inflation for the month March rose to 3.5% annually compared to 3.2% in February. On Wednesday the US treasury yields surged while the equities recorded a fall after the data showing a higher US inflation was released.