Central banks are unlikely to go in for a co-ordinated withdrawal of stimulus measures as it may hamper global economic recovery, a top financial services expert said.
“I don’t think there will be any co-ordinated withdrawal of stimulus and liquidity by central banks across the world...it will be guided by local considerations,” UTI AMC Chairman, U.K. Sinha, told reporters here on Wednesday.
In India, the Reserve Bank has given enough policy signals, including the recent hike in SLR, that it was exiting from the easy money regime but the RBI will have to hike its policy rates sooner or later, Mr. Sinha said.
UTI AMC has seen positive inflows into its equity-oriented funds in the past three months and auto, IT and pharma sectors have shown a good growth, he said.
While auto, pharma and IT sectors are picking up and FMCG firms continue to grow driven by rural demand, infrastructure firms may take a little more time to pick-up, the UTI AMC chief said.
“The auto sector is doing well...we are positive on pharma and IT. (For a pick up in) Infrastructure, a little more time is required,” Mr. Sinha said, adding that a weak monsoon has affected the agriculture sector in the country.
