look news india
S&P Global Ratings: S&P Global Ratings has said in its report that RBI may announce a cut in interest rates. On Tuesday, S&P said that India's economic growth is optimistic. The earlier GDP growth estimate has been kept unchanged at 6.8 percent.
You may get the gift of cheap interest rates in October –
RBI MPC meeting will be held on 7-9 October. S&P has expressed hope of rate cut. There has been no change in interest rates in the last 9 meetings. It has been kept at 6.5 percent for review.
The RBI MPC has kept rates unchanged through February 2023 after the US Federal Reserve cut interest rates by a more-than-expected 0.5 percentage point amid concerns about a slowdown in the US economy.
In its new economic outlook for Asia-Pacific, S&P has retained its GDP growth forecast for financial year 2025-26 (FY26) at 6.9 per cent.
S&P said that the main reason for the slowdown in India's GDP growth in the June quarter was high interest rates. Which has reduced urban demand.
India's economic growth rate is projected to reach 8.2 per cent in FY24. A total of ₹11.11 trillion was allocated for capital expenditure in the budget. The Centre aims to bring down the fiscal deficit to below 4.5 per cent of GDP by FY26.
We expect the RBI to start cutting rates in early October and expect two rate cuts this fiscal year (end of March 2025). It will be difficult to maintain headline inflation at 4 per cent. Inflation is expected to average 4.5 per cent in the current fiscal year.