INSUBCONTINENT EXCLUSIVE:
Despite the recent dip, a Reuters poll has estimated that inflation will pick up again, to average 4.5 per cent this fiscal year and 4.3 per
cent next year (Photo: Reuters)3 min read Last Updated : Oct 07 2024 | 1:49 PM IST
India's central bank is likely to keep rates steady on
Wednesday, with a small number of investors betting on the probability of a change in stance to neutral, opening the door to rate cuts as
economic growth slows and global rates ease.
The Reserve Bank of India (RBI) is seen maintaining the repo rate at 6.5 per cent for a 10th
straight meeting with more than 80 per cent of the 76 economists in a Reuters poll forecasting no change in rates
basis-point cut, while one anticipated a drop to 6.15 per cent
participants believe the U.S
Federal Reserve's 50-bp rate cut last month may prompt the RBI to start cutting rates sooner rather than later, with most now pricing in a
the likely sizeable undershooting in the Q2 CPI inflation print as well, we believe a stance change to neutral may be appropriate in the
quarter from a year earlier as a decline in government spending during national elections weighed, but it remained the world's
cent for a second consecutive month, clocking in at 3.65 per cent in August, higher than the revised 3.60 per cent in July and economists'
growth and falling inflation and project a 100-basis-point cut in the repo rate by December 2025, with the first cut starting in December
Not only as the markets will hear from the new external members, but also as the debate in India has veered around a likely slowdown story
and limited risks for inflation," economists at Yes Bank said in a note.
The RBI reshuffles its panel every four years which could affect
members may see at least one dissenter calling for a rate cut, several economists said in separate research notes last week.(Only the
headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a
syndicated feed.)First Published: Oct 07 2024 | 1:49 PMIST
