Indian rate swaps ease after industrial data

Indian rate swaps ease after industrial data

Reuters

Mumbai: Indian overnight indexed swaps eased on Wednesday, 12 September, after a lower-than-expected growth in industrial output in July raised expectations the central bank would leave key rates unchanged in the coming months.

At 12:40pm, the five-year overnight indexed swap was at 7.12-7.14%, down from the previous close of 7.15-7.18%.

“Fears that the central bank would tighten policy further have receded after the data," a foreign bank trader said.

India’s industrial output rose 7.1% in July from a year earlier, sharply lower than downwardly revised annual growth of 9% in June due to slower manufacturing output, data showed on Wednesday.

The figure was way below a forecast in a Reuters poll of economists for growth of 9.6%.

Manufacturing output rose 7.2% in July from a year earlier, compared with provisional annual growth of 10.6% in June.

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