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"They still have some room to grow; most people think the Fed hasn't stopped easing" interest rates, he said.
Add high energy costs and tight labor markets, and you've got a recipe for the Fed to adopt a policy of watchful waiting -- not easing interest rates immediately.
In that case, he said, the Federal Reserve Board might have to consider easing interest rates to keep the situation from growing more grave.
The recent upgrade in India's outlook by Fitch Ratings will be a comforting factor, and the R.B.I. will try hard to get the rupee in order before pursuing its goal of easing interest rates to take the economy forward.
With inflation contained, the Federal Reserve will feel more confident about easing interest rates, though analysts say a summer upswing in growth could lead to rate increases in the final months of the year.
"If ever a bell tolls to buy banking stocks, it's when the Fed is in the early stages of easing interest rates," said Ronald Mandle, a bank stock analyst at Sanford C. Bernstein.
Similar(44)
The Fed aggressively eased interest rates further in an emergency move Tuesday.
The Bank of Canada is expected to ease interest rates next month.
It contributed to the Fed's decision to ease interest rates.
The Reserve Bank appears in no hurry to ease interest rates despite rising expectations of a rate cut before Christmas.
Both the Federal Reserve and the European Central Bank have eased interest rates aggressively in recent weeks to stave off such threats.
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