Food prices have been falling, driving down inflation and pushing up real interest rates.

The vote itself that is on table today might not get passed, says Narayanan.

“If inflation continues to go up, then there is a good case for considering rate hike in early 2020.”

“Consumption should be the big driver. Capex is a little slow but picking up.”

“The US Fed was probably not as hawkish as expected and may be slightly dovish as well”

We now expect 2.1% year-on-year which is a significant increase from the 1.6% that we have seen for 2016, says Narayanan.

A 25 basis points rate hike is already baked in, but more than that, the Fed commentary on rate hikes in 2017 holds key for the domestic ma...

The path could be steeper in 2018 as more hawkish Fed board members come back in and potentially inflation picks up as well in the US, says...