The RBI has shifted its monetary policy stance from ‘withdrawal of accommodation’ to ‘neutral,’ signaling a more accommodative environment. This could lead to rate cuts as early as December. Key Points: Confidence in Disinflation: The RBI is optimistic about achieving its 4% inflation goal, supported by favorable conditions. Market Reaction: Bond yields fell by 3-7 basis points following the announcement. CPI Insights: With 94% of the CPI basket near 3% inflation, we expect headline CPI to align closely as vegetable prices stabilize. Our analysis suggests a potential 20-30 basis points downside to the RBI’s FY25 inflation forecast, with possible rate cuts of 50-100 basis points before the end of 2025. Stay tuned for updates! #QuantumMutualFund #RBIMonetary Policy #InvestWithoutStress Mutual Fund investments are subject to market risks, read all scheme related documents carefully.
Quantum Mutual Fund’s Post
More Relevant Posts
-
The "withdrawal of accomodation" had lost its relevance. There was no accomodation left to be withdrawn. So, the stance change is just a formality. Yet, what makes it so relevant is that it indicates a rethinking within the MPC about growth inflation dynamics. RBI's growth and inflation estimates are kept same as they were in the last policy; but now the MPC seems more confident about the future outlook. On inflation, volatile vegetable prices continue to make headline inflation forecasts unreliable. There is a reasonable case to look at ex-vegetable CPI to gauge the underlying inflation trajectory. This measure of retail inflation has been much below the RBI's 4% goal for last many months. This offers ample room for rate cuts going forward. #rbipolicy #monetraypolicy #bondmarket
The RBI has shifted its monetary policy stance from ‘withdrawal of accommodation’ to ‘neutral,’ signaling a more accommodative environment. This could lead to rate cuts as early as December. Key Points: Confidence in Disinflation: The RBI is optimistic about achieving its 4% inflation goal, supported by favorable conditions. Market Reaction: Bond yields fell by 3-7 basis points following the announcement. CPI Insights: With 94% of the CPI basket near 3% inflation, we expect headline CPI to align closely as vegetable prices stabilize. Our analysis suggests a potential 20-30 basis points downside to the RBI’s FY25 inflation forecast, with possible rate cuts of 50-100 basis points before the end of 2025. Stay tuned for updates! #QuantumMutualFund #RBIMonetary Policy #InvestWithoutStress Mutual Fund investments are subject to market risks, read all scheme related documents carefully.
To view or add a comment, sign in
-
The RBI maintained the repo rate at 6.50% to prioritize inflation control, committed to a 4% CPI target, and announced a 50 bps CRR cut to alleviate liquidity stress. It revised FY25 GDP growth estimates down to 6.6% due to industrial weakness and expects food inflation to ease by Q4FY25. For more economic insights, check out #FinSIghts.
To view or add a comment, sign in
-
"RBI MPC Meeting: The Wait Continues... 🕰️" "Hey finance friends! 👋 The RBI's MPC meeting has concluded, and here are the key highlights: - Interest Rates: Unchanged for the 9th time! 🤯 Repo rate remains at 6.50%. - Policy Stance: 'Withdrawal of accommodation' continues, staying vigilant on risks. 💡 - Inflation Focus: High food prices remain a concern, with food inflation driving overall inflation. 🍔🥤 - Inflation Data: June's CPI surged to 5.1% due to vegetable prices. 🥗 - GDP Forecast: Unchanged at 7.2% for FY25, with quarterly projections. 📈 - Inflation Projections: FY25 forecast remains at 4.5%. 🔍 The RBI is playing the waiting game, but for how long? 🤔 #RBIMPC #MonetaryPolicy #InterestRates #Inflation #GDPForecast #EconomicOutlook #FinanceFraternity #IndianEconomy"
To view or add a comment, sign in
-
Hi everyone! 👋 As discussed in yesterday’s video, I’ve been tracking the RBI MPC meeting closely. Here are the key takeaways: [1] Shift to Neutral Stance: Moving from 'withdrawal of accommodation' to ‘neutral,’ hinting at potential rate cuts. [2] New Measures Introduced: UPI transaction limits have been raised, and a Climate Risk Information System is in place. [3] Repo Rate Steady: RBI keeps the repo rate unchanged at 6.5% for the 10th straight meeting. [4] Inflation Forecast Stable: CPI inflation remains at a forecast of 4.5%, signaling steady expectations. [5] GDP Growth Maintained: FY25 GDP growth forecast held steady at 7.2%, with minor quarterly adjustments. #RBIPolicy #IndianEconomy #MPC
To view or add a comment, sign in
-
The RBI sharply raised its headline inflation forecast for Oct-Dec by 90 basis points to 5.7% and for the entire FY25 by 30 bps to 4.8%. Is the horse making a run away from the stable after resting for a while? Read Informist report on what led the RBI to revise its inflation projections. https://lnkd.in/gMfgCYt5
To view or add a comment, sign in
-
𝗥𝗕𝗜 𝗣𝗢𝗟𝗜𝗖𝗬: 𝗠𝗣𝗖 𝗠𝗘𝗘𝗧𝗜𝗡𝗚 𝗕𝗘𝗚𝗜𝗡𝗦 𝗧𝗢𝗗𝗔𝗬, 𝗪𝗜𝗟𝗟 𝗧𝗛𝗘 𝗖𝗘𝗡𝗧𝗥𝗔𝗟 𝗕𝗔𝗡𝗞 𝗖𝗨𝗧 𝗧𝗛𝗘 𝗥𝗘𝗣𝗢 𝗥𝗔𝗧𝗘? ● The RBI is expected to maintain current policy rates in the upcoming MPC meeting, signalling potential future cuts. ● The MPC's policy decision on Friday, December 6. ● With GDP growth slowing and inflation mixed, careful adjustments are necessary for stability, while a rate cut might occur by February 2025 if inflation moderates. 𝗟𝗔𝗦𝗧 𝗣𝗢𝗟𝗜𝗖𝗬 𝗠𝗘𝗘𝗧𝗜𝗡𝗚: * Repo rate unchanged at 6.5% * Changed the policy stance to 'neutral' from 'withdrawal of accommodation'. 𝗜𝗡𝗙𝗟𝗔𝗧𝗜𝗢𝗡: ■ October CPI inflation at 14- month high at 6.21%, exceeding the RBI tolerance band of 4-6%. ■ The November CPI inflation will be declared on December 12. 𝗚𝗗𝗣: ➖️ The Q2FY25 GDP stood at 5.4 per cent. ➖️ Lowest in nearly two years and marking the third consecutive quarter of decline. 𝗜𝗡𝗥 ₹: > RBI cannot overlook the renewed strength of the dollar following Donald Trump's victory in the US election. > The rupee has plunged to a record low against the dollar, compounded by persistent geopolitical tensions and ongoing concerns over climate-related shocks. Wʜᴀᴛ ᴀʀᴇ ʏᴏᴜʀ ᴠɪᴇᴡꜱ❔️🤔 🎓 Follow Shivangi Khanna for more such valuable insights ✨️ #RBI #MonetaryPolicy #December #Inflation #GDP #INR
To view or add a comment, sign in
-
RBI Meeting Highlights 🇮🇳 💼 The RBI keeps the Repo Rate steady at 6.5% for the 9th consecutive time! 🚦 📈 Real GDP growth forecast for FY25 gets a boost to 7.2%! 🌟 (Q1: 7.3%, Q2: 7.2%, Q3: 7.3%, Q4: 7.2%) 📊 CPI inflation for FY25 projected at 4.5%, keeping the economy on a balanced track. 📉 Stay informed and stay ahead with Investsphere Wealth! 👉 For more updates, follow us: 📞 +91 9967840876 🌐 www.investspherewealth.com #RBIUpdates #EconomicGrowth #FinancialInsights #InvestsphereWealth #StayInformed #InvestsphereWealth #ChildEducation #SmartInvestments #FuturePlanning #FinancialSecurity #InvestInEducation #FinancialFreedom #consistentearnings #investment #stockmarket #healthiswealth #mutualfund #stocksmarket #wealthmanagement #stockmarketeducation #mutualfunds #wealthymindset #investmenttips #stockinmarket #wealthtips #mutualfundsahihai
To view or add a comment, sign in
-
RBI Meeting Highlights 💼 The RBI keeps the Repo Rate steady at 6.5% for the 9th consecutive time! 🚦 📈 Real GDP growth forecast for FY25 gets a boost to 7.2%! 🌟 (Q1: 7.3%, Q2: 7.2%, Q3: 7.3%, Q4: 7.2%) 📊 CPI inflation for FY25 projected at 4.5%, keeping the economy on a balanced track. 📉 Stay informed and stay ahead with Investsphere Wealth! 👉 For more updates, follow us: 📞 +91 8975446462 🌐 www.investspherewealth.com #RBIUpdates #EconomicGrowth #FinancialInsights #InvestsphereWealth #StayInformed #InvestsphereWealth #ChildEducation #SmartInvestments #FuturePlanning #FinancialSecurity #InvestInEducation #FinancialFreedom #consistentearnings #investment #stockmarket #healthiswealth #mutualfund #stocksmarket #wealthmanagement #stockmarketeducation #mutualfunds #wealthymindset #investmenttips #stockinmarket #wealthtips #mutualfundsahihai
To view or add a comment, sign in
-
Big News from the RBI: Is a Rate Cut Coming Soon? While the RBI’s Monetary Policy Committee (MPC) has kept interest rates unchanged, the real story is the shift in stance — moving from 'withdrawal of accommodation' to a more 'neutral' outlook. This signals that a rate cut might be just around the corner! Governor Shaktikanta Das dropped some subtle hints, comparing inflation control to a horse brought back to the stable. Though the RBI is keeping a tight leash, the message is clear: the rate hike cycle that began in May 2022 seems to be over. What does this mean? 💡 A potential December rate cut could lower borrowing costs for both individuals and businesses, boosting demand and easing financial pressures, especially for small businesses. But there are risks. Global geopolitical factors, food inflation, and core inflation are still in play. The next two inflation readings (September & October) will be crucial before any final decision is made. 📊 Stock markets have already reacted positively — Nifty and Sensex are up, bond yields are easing, and optimism is growing for a rate cut. Are you watching for the rate cut too? #RBI #RateCut #Economy #Inflation #MonetaryPolicy #Markets
To view or add a comment, sign in
-
Summary of RBI MPC Meeting! Repo Rate is unchanged at 6.5% (10th consecutive meeting) Policy Stance is changed to ‘Neutral’ from ‘withdrawal of accommodation’ GDP Growth Forecast for FY25 is retained at 7.2% Q2FY25: Revised down to 7% (from 7.2%) Q3FY25: Revised up to 7.4% (from 7.3%) Q4FY25: Revised up to 7.4% (from 7.2%) Q1FY26: Revised up to 7.3% (from 7.2%) CPI Inflation Forecast for FY25: Retained at 4.5% Q2FY25: Cut to 4.1% (from 4.4%) Q3FY25: Raised to 4.8% (from 4.7%) Q4FY25: Cut to 4.2% (from 4.3%) Q1FY26: Cut to 4.3% (from 4.4%) #stockmarket #finance #rbi
To view or add a comment, sign in
16,358 followers