New Delhi, Oct. 12 -- The rise in long-term US interest rates due to massive public borrowing and artificial intelligence (AI)-related expenditure could preclude the Fed from raising short-term rates further as the rise at the longer end of the yield curve is already impacting housing and rent markets, said Vincent Mortier, group CIO of France's Amundi, Europe's largest portfolio management firm. Amundi has €2.6 trillion in assets under management and is an investor in SBI Funds Management Ltd, India's largest asset management company.

Mortier expects India's strong macroeconomic fundamentals to draw back foreign investors in the likely event of a moderation in the AI earnings supercycle and oil prices due to a resolution of the We...