Floating rate funds can cushion interest rate volatility: Rahul Goswami

Goswami says case for normalisation of monetary conditions is starting to pick up pace, and next step will be to narrow the policy rate corridor closer to pre-pandemic level

Rising commodity and energy prices are the biggest risk in the medium term, says RAHUL GOSWAMI, chief investment officer (CIO)-fixed income at ICICI Prudential Mutual Fund. In an interview with Chirag Madia, Goswami says the case for normalisation of monetary conditions is starting to pick up pace, and the next step will be to narrow the policy rate corridor closer to the pre-pandemic level, all of which is likely to pan out over the next two to three quarters. Edited excerpts:
 
What’s your view on the debt markets, given the Reserve Bank of India (RBI) has embarked on liquidity