India Poised for Lower Inflation and Interest Rates, Say Economists

-

India's economic landscape is showing signs of easing inflation and potential interest rate reductions, according to a recent Moneycontrol poll of economists. The survey indicates that consumer price inflation is expected to continue its downward trend, providing the Reserve Bank of India (RBI) with room to lower interest rates to support economic growth.




Reuters

In November, retail inflation eased to 5.48%, down from October's 6.21%, primarily due to a slowdown in food price increases, particularly vegetables. This moderation in inflation has bolstered expectations for a rate cut by the RBI in its upcoming policy meetings. Economists anticipate a 25 basis point reduction in the repo rate, which currently stands at 6.25% following a cut in February—the first in nearly five years.Reuters+1Moneycontrol+1Reuters+1Business Standard+1

RBI Governor Sanjay Malhotra emphasized that the recent rate cut was driven by inflation aligning with the central bank's target, and he highlighted the positive outlook for food inflation due to favorable agricultural conditions. The central bank projects consumer price index (CPI) inflation at 4.2% for the fourth quarter and for the financial year 2025-26.Reuters+3Business Standard+3The Financial Express+3

While the RBI has maintained a cautious approach, the combination of easing inflation and slowing economic growth—projected at 6.4% for the fiscal year—suggests that further rate cuts may be on the horizon. However, economists also point to potential risks, including global geopolitical uncertainties and volatile energy prices, which could impact the inflation trajectory and monetary policy decisions.Reuters+1Reuters+1

Overall, the consensus among economists is that India is entering a phase of lower inflation and interest rates, which could provide a conducive environment for economic expansion and investment.

Comments

Post a Comment

Popular posts from this blog

Top 5 Online Marketing Services: Elevate Your Business

-
  In the digital age, online marketing has become the cornerstone of business growth. Leveraging the right online marketing services can significantly boost your brand’s visibility, engagement, and revenue. Here, we explore the top five online marketing services that can take your business to the next level, highlighting Rajesh Joshi Chariot Media Marketing Services as a leading provider. 1. Search Engine Optimization (SEO) Overview: SEO is the process of optimizing your website to rank higher in search engine results pages (SERPs). This includes keyword research, on-page optimization, link building, and content creation. A well-executed SEO strategy increases organic traffic to your site, making it easier for potential customers to find you. Why It's Essential: SEO is crucial because many online experiences begin with a search engine. Higher rankings increase your website’s visibility, credibility, and the likelihood of attracting clicks from potential customers. Top Provider: ...
Read more

Healthy Mornings: Top 10 Nutrient-Packed Breakfast Recipes

-
  A nutritious breakfast sets the tone for the rest of your day. To help you make the healthiest choices, here are ten nutrient-packed breakfast recipes that will keep you energized and satisfied. Chia Seed Pudding : Mix chia seeds with almond milk, honey, and vanilla extract. Refrigerate overnight, and top with fresh berries and nuts in the morning. Egg White and Veggie Scramble : Whip up egg whites with diced bell peppers, spinach, and cherry tomatoes. Season with herbs and serve with whole-grain toast. Green Smoothie : Blend spinach, kale, banana, Greek yogurt, and a splash of orange juice for a vitamin-packed smoothie that's perfect for on-the-go mornings. Overnight Oats : Combine rolled oats, almond milk, chia seeds, and your favorite toppings like sliced strawberries and a drizzle of honey. Refrigerate overnight and enjoy in the morning. Sweet Potato Breakfast Hash : Saute diced sweet potatoes with onions, bell peppers, and lean turkey sausage for a filling and nutritious bre...
Read more

Top Level 5G smartphones under 15k with great salient features – Check out the lists

-
Image
In this modern era, smartphones play a crucial role in connecting people, especially with the advent of 5G. A good 5G smartphone with excellent camera features is a must-have. When you visit the market, you'll find many 5G phones with amazing features. Now, the challenge lies in choosing the best smartphone with all the latest features. For heavy-duty tasks on your device, ensure you opt for one with high performance and a high refresh rate. The new Redmi 12 Pro 5G offers compelling options under 15,000 rupees. It features a 6.79-inch display with robust build quality. Moreover, this new mobile phone boasts a 5000 mAh battery with 18W fast charging. Its design can rival that of much more expensive models. Moto G34 5G Moto is known for its sturdy devices and great build quality. The Moto G34 5G now comes with a Snapdragon 695 6nm processor and a 5000 mAh battery, elevating its performance. For capturing life's special moments, it offers a 16MP camera and supports 20W fast chargi...
Read more