ICICI Securities Primary Dealership CEO Shailendra Jhingan believes the Reserve Bank of India (RBI) should ignore the increase in US Treasury yields and instead focus on inflation, with particular attention on food prices. If the Consumer Price Index (CPI), minus vegetables, remains at current levels of 5.2%, Jhingan thinks rates are "at the correct level." He also said the market was likely to hold its current policy with a 15-20% chance of a rate hike occurring over the next year. Jhingan advised investors to consider the 10-year and upward part of the government bond yield curve.
