Traders are increasingly betting on an October rate hike by the Reserve Bank of India, with surging oil prices and broadening inflation strengthening the case for tighter policy, while an expected Federal Reserve hike adds to the pressure, four traders said.
The one-year overnight index swap rate rose 8 basis points on Tuesday to 6.11%, its highest since early June, while the five-year rate jumped 11 bps to 6.68%.
