Sameer Goel, global head of emerging markets research at Deutsche Bank, on Wednesday, said that the emerging markets remain vulnerable to US Fed tightening cycle.

He further said that the market is pricing in 3 hikes in 2022 and another 3 hikes in 2023.

Talking about India, he said that the November inflation print does not shift the needle too much. “Core inflation is fairly elevated; the direction of both headline and core is still to the more topside,” said Goel.

Also Read: US Federal Reserve may hike interest rates in 2023, says Vaibhav Sanghavi of Avendus Capital

Tightening by RBI likely to be delayed to February, he said. “We expect 2 rate hikes in 2022, 3 in 2023 and 1 in 2024 by the Reserve Bank of India,” Goel said.

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