Uday Kotak sounds alarm bells on global economy; says US Fed may postpone rate cuts, China the ‘only wild card’

Our Bureau Updated - April 11, 2024 at 09:07 PM.

US Fed may postpone rate cuts to later, possibly closer to the US Presidential elections, given higher-than-expected inflation, says Uday Kotak

Uday Kotak, Former MD & CEO, Kotak Mahindra Bank | Photo Credit: ANI

Veteran banker Uday Kotak took to platform X on Thursday to warn investors of possible global turbulence, citing several factors.

The former MD and CEO of Kotak Mahindra Bank hinted that the US Fed may postpone rate cuts to later, possibly closer to the US Presidential elections, given higher-than-expected inflation.

Kotak also spoke about the possibility of the Chinese economy imploding economically. The collapse of the property bubble has weakened the Chinese economy and deepened the unemployment crisis, leading overseas investors to pull out money from the Chinese stock market.

“US inflation is higher than expected. Postpones US rate cuts to later, closer to US Presidential elections, if at all. Brent oil now $90. Will keep rates higher for longer worldwide including India. Only wild card: China imploding economically. Get ready for global turbulence,” the banker said in a post on platform X.

Published on April 11, 2024 15:37

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