• August 16, 2023

RBI Rate Cut Possible Only After July 2024: Icra – News18

RBI Rate Cut Possible Only After July 2024: Icra – News18
Share

A rate hike by RBI is possible only if the headline inflation is at over 6 per cent for two consecutive quarters.

A rate hike by RBI is possible only if the headline inflation is at over 6 per cent for two consecutive quarters, the agency said.

Domestic ratings agency Icra on Monday said it expects a rate cut by the Reserve Bank to happen only in the July-September quarter next year.

The overall cuts in the cycle will be a “shallow” 0.50-0.75 per cent, the agency said.

A rate hike by RBI is possible only if the headline inflation is at over 6 per cent for two consecutive quarters, the agency said.

Also Read: RBI MPC Decision: Is There Any Impact On Home Loan EMIs? What Borrowers Must Know

“The MPC’s (Monetary Policy Committee) latest forecasts suggest inflation will remain above 5 per cent through Q1 FY2025, based on which we have pushed out our forecast for the earliest cut to Q2 FY2025,” the agency said.

The official data released on Monday said consumer price inflation (CPI) spiked to a 15-month high of 7.4 per cent for July.  ”The data for food prices for early August 2023 is not very promising, and we expect the headline CPI inflation to print above the 6.5 per cent mark in August, before cooling off materially in September,” its chief economist Aditi Nayar said.

She attributed the much sharper than expected spike in July to vegetables, as well as some other food items such as pulses, spices and cereals.

If one were to exclude the impact of vegetables, the CPI would have come at 5.4 per cent, she said, adding that this would be “relatively tolerable”.

(This story has not been edited by News18 staff and is published from a syndicated news agency feed – PTI)



Source


Share

Related post

Bangladeshi Hindus protest over denial of bail to ISKCON monk, one killed as tensions erupt between religious groups

Bangladeshi Hindus protest over denial of bail to…

Share Bangladeshi Hindu leader Krishna Das Prabhu shows a victory sign as he is taken in a police…
‘Starting To Get Into Rhythm’, Says Real Madrid Forward Kylian Mbappe Following Strike Against Leganes – News18

‘Starting To Get Into Rhythm’, Says Real Madrid…

Share Last Updated:November 26, 2024, 19:33 IST Mbappe found the back of the net once against Leganes to…
Infosys ने कर्मचारियों को दिया 90% तक बोनस! जानिए क्यों मेहरबान हुई कंपनी

Infosys ने कर्मचारियों को दिया 90% तक बोनस!…

Share Infosys: देश की दूसरी सबसे बड़ी आईटी सेवा कंपनी इंफोसिस ने चालू वित्त वर्ष 2024-25 की सितंबर…