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Will the RBI hold steady or pivot in response to global rate cuts? Economists weigh in

As the Reserve Bank of India’s (RBI) Monetary Policy Committee (MPC) prepares to meet from October 7th to 9th, 2024, it faces a complex balancing act. Amid global uncertainty—marked by aggressive rate cuts by three major central banks and the intensifying conflict in the Middle East—the RBI must carefully weigh its options. Inflation, financial conditions, […]

US adds 254,000 jobs in September, unemployment rate falls to 4.1%

US job growth accelerated in September, with 254,000 nonfarm payrolls added, well above economists’ expectations of 140,000. This follows an upward revision of August’s figures to 159,000, according to the Labor Department’s latest data. The unemployment rate dropped to 4.1% from 4.2%, marking another positive development in the labour market. Average hourly earnings increased by […]

UK inflation is steady at 2.2% ahead of Bank of England’s next rate decision

Inflation in the UK held steady at an annual rate of 2.2% in August, with higher airfares offset by lower fuel costs and restaurant and hotel bills, official figures showed Wednesday. The latest reading from the Office of National Statistics means inflation remains just above the Bank of England’s target of 2%. Last month, the […]

RBI’s next big decision: 3 new faces, 2 charts, 1 rate

The US Federal Reserve is only one of the many central banks around the world that have started cutting interest rates but the Reserve Bank of India (RBI)  may wait a little longer than others. Even before the Fed started, many have already made a case for a rate cut in India citing high real […]

C Rangarajan says it’s time for interest rate cuts as India’s inflation drops

C. Rangarajan, former Reserve Bank of India (RBI) Governor, is advocating for interest rate cuts as India experiences a slowdown in inflation. In an interview with CNBC-TV18, he noted that the RBI could consider reducing the repo rate, especially since inflation has decreased over two recent six-week cycles. “The last two times, the inflation rate […]

GST rate rejig on anvil as GoM mulls merger of slabs

In what could impact our pockets soon, the government is considering overhauling the current GST rates across goods and services. According to sources, discussions to merge the current slabs under the GST regime are nearing conclusion at the Group of Ministers (GoM) level, and based on their recommendations, the GST Council will deliberate on the issue. […]

China cuts key rate, frees up cash for banks to spur growth

China cut the amount of cash banks must keep in reserve Friday and lowered a key policy rate, as Beijing rolls out a strong stimulus package unveiled this week in a push to shore up the slowing economy and investor confidence. The People’s Bank of China’s 0.5 percentage point reduction to the reserve requirement ratio […]

Q&A | Rate cuts to impact financial sector earnings by 3-6%: BNP Paribas

Brokerage BNP Paribas projects that upcoming rate cuts may reduce financial sector earnings by 3-6%. Its India Analyst (BFSI), Santanu Chakrabarti, says this has already been factored into their forecasts, indicating no need for drastic revisions. Additionally, post-cut margins could set the foundation for gradual expansion, driven by factors such as improved liquidity, the repricing of […]