RBI MPC: SBI says rate cuts might take place only in Q3 FY25

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Key Points

Ahead of the Reserve Bank of Indias (RBIs) Monetary Policy Committee meeting from April 3-5, State Bank of India, in its research report, has stated that rate cuts are not likely in the upcoming MPC..

Strong evidence of emerging economy central bank rate actions are predicated by advanced economy central bank rate actionsIndia is an exceptionfirst RBI cut in Q3FY25such rate cut cycle likely to be shallow, stated SBI in its report, adding that the stance should continue to be withdrawal of accommodation...

The SBI report added that inflation is expected to decline till July, but increase after that to reach a peak of 5.4 per cent in September, followed by a deceleration..

CPI inflation is expected to remain slightly above 5.0% in the remaining one month of FY24, the report added...

Equity inflows comprises of ~70 per cent of total inflows as of now but going forward we believe the debt inflows can pick up big time as passive investments in bonds under FAR route start trickling for both JP Morgan as also Bloomberg index investors, it said..

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