RBI’s Status Quo Snooze: Cheaper Groceries, But No Relief for Your Wallet Yet
In a move as predictable as Mumbai’s monsoon traffic, the RBI’s Monetary Policy Committee yesterday opted for a grand pause—keeping […]
MPC
Will India’s Rate Cut Spark Growth or Stumble on Global Fault Lines?
Mumbai’s small business owner Priya Sharma is holding her breath. With loan EMIs eating into her textile shop’s margins, she’s
CPI inflation bounce back to 6.2 % in October
Subdued global commodity prices amid concerns over global demand should further aid in moderation of the headline inflation going ahead. In October, global commodity price index declined by 4.3% YoY, while Brent crude prices fell by 15% YoY. However, it is crucial to monitor geopolitical developments closely, as these could significantly influence global commodity markets and supply chains.
Are we looking at a rate cut in December?
Even though this is partly due to base effect, what is more interesting to note here is that the inflation has averaged at 3.65 per cent for the first two months of the second quarter. The RBI has forecast an average 4.4 per cent inflation in the second quarter.
RBI MPC Minutes; Increasing divergence in growth assessments, says Madhavi Arora of Emkay Global
Continued moderation in core inflation was unanimously recognized, but the possibility of higher food prices spilling over to core remains a key concern. Real rate concerns raised their head again, but have not yet become the prevalent view among most committee members. Going forward, the RBI is likely to continue stressing on being ‘actively disinflationary’ and maintain a wait-and-watch mode to assess multiple macro forces, both domestic and global.