Interest Rates May Not Come Down As Expected, Says EY’s Rajiv Memani

Interest rates around the globe are expected to come down but may not fall at a rate anticipated by the market, according to EY India Chairperson Rajiv Memani.

Rate cuts will be determined by various factors, including inflation, geopolitical issues, economic growth and what happens in China, he told NDTV Profit’s Niraj Shah on the sidelines of the World Economic Forum 2024 in Davos.

The interest rates will definitely not reach the levels at which they were earlier, and it will impact the investment decisions of private equity funds and financial advisers, according to the chair of the EY Global Emerging Markets Committee.

The mood was much bearish last year when people were discussing whether there would be a recession or slowdown for a quarter or two quarters, Memani said. “Things have not worked out perfectly, but it is not as bad as people thought it would be,” he said. “So, this year, things will start picking up.”