jaycee77

India interest rates seem to be close to a near term peak

Every time the yield curve becomes flat or inverted, i.e. the gap between short-term and long-term rates becomes close to zero or negative, it has signaled a fall in yields over the next few months. While one can not be sure as the world economy is in a state of flux, history tells us that probability is high.

Also, one can notice that every time, the rates are peaking at lower levels than before. This is because of a fundamental change in inflationary trends Indian economy, where due to various economic reforms, structural changes, and monetary policy, the long-term inflation rate has been trending down.

As and when this happens, this will be positive for the Indian economy as well as markets.

Disclaimer

The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.