After the revision of the Consumer Price Index (CPI) base year, overall CPI inflation is expected to rise marginally by 20-30 basis points (bps), according to a report by SBI Ecowrap.
Despite a record liquidity push by the Reserve Bank of India (RBI), transmission of monetary easing across financial markets remains uneven, according to SBI Research's latest Ecowrap report.
The rupee has fallen from Rs 85 to Rs 90 per USD in under a year, far quicker than previous five-rupee intervals, which earlier took anywhere between 581 to 1,815 days. SBI in its report noted this as the second-quickest fall since the 2013 Taper Tantrum.
India's economy expanded 8.2 per cent in Q2 FY26, the highest in six quarters, backed by strong growth in manufacturing, construction, and services, according to the latest SBI Research Ecowrap report. The data shows that India's economy is expected to grow at 7.6 per cent in FY26, driven la
"With benign inflation this month and going forward, we expect a cumulative rate cut over the cycle could be at least 75 basis points, with successive rate cuts in next policy April and June 2025. With an intervening gap in Aug'25, the rate cuts cycle could restart from Oct'25, says the repo
"Dr. Rajiv Ranjan, the only member to have continuity from August meeting has reiterated his position that policy action is on course to achieve the objective and window of opportunity to revise the stance will be open in October," said SBI Ecowrap report.
Retail inflation in India eased a tad in February to 5.09 per cent from 5.10 per cent the prior month, due to the deceleration of prices in all categories except food.
Once the CPI comes under control for fruits, vegetables, spices, and cereals, headline inflation is expected to drastically reduce to come near the mid-point of the RBI inflation target of 4 per cent, said SBI Research in a report.
SBI Research, in its latest 'Ecowrap' report, noted that a continued vigil on the evolving inflation outlook is warranted given the erratic progress of monsoon and its impact on Kharif crop sowing, and subsequently on overall food inflation.
SBI Research in a report analysed and argued how the withdrawal of Rs 2000 banknotes could boost bank deposits, repayment of loans, consumption, RBI's retail digital currency usage, and overall economic growth.
Amidst this global hullabaloo, the SBI Research Ecowrap said India is expected to continue its showdown in pursuing a different pathway of zeroing in on drivers of growth, looking for a renewed surge in resilient manufacturing while supporting services sector to embrace enhanced efficienc