 "RBI")
A part of India's overnight indexed swaps curve, a gauge for future policy rates, may steepen as investors are pricing in a more hawkish-than-expected central bank stance, BofA Securities said on Friday.
BofA expects the Reserve Bank of India to raise rates by 25-35 basis on Sept. 30 and reckons the policy rate will reach 6.5% by end-2023, much later than what some investors are expecting.
The forward OIS curve up to 6 months is pricing in two 60-basis-point rate hikes over the next two RBI meetings, which would take the policy rate above 6.5% by December itself.
"Inflation and growth indicators (are)
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