RBI expected to start rate cut cycle from December this year: UBS

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The Reserve Bank of Indias Monetary Policy Committee (MPC) is expected to start easing from December 2024, said a report by UBS...

Given the domestic inflation outlook is improving (likely to be 30bps lower than RBI's forecast of 4.5% for FY25) and global monetary easing cycle has begun, "We now expect MPC to lower repo rates by 75 bps in this cycle (prior forecast: 50bps )," said the report titled, Five key questions for the Indian economy...

The U.S. Federal Reserve last week reduced its key interest rate by 50 basis points...

US Federal Reserve has acted in the best interests of the world's largest economy, the RBI will make its decision on interest rate cuts based on what suits the Indian economy, said Economic Affairs Secretary Ajay Seth...

Earlier, Reserve Bank Governor Das also said the decision on interest rate moderation will be based on long-term inflation trajectory and not on the basis of monthly data..

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