The Reserve Bank of India (RBI) may postpone the beginning of its rate cut cycle to April 2025 because of the Federal Reserve's shift towards a more hawkish monetary stance, says research a report by Yes Bank.
The US Federal Reserve in continuing the rate cut cycle cut the interest rate by 25 basis points, according to an official statement following the key FOMC meeting.
The Federal Reserve Chair, Jerome Powell, indicated that the anticipated rate cuts may be delayed, as the US economy continues to show signs of strength.
The U.S. Fed in its latest meeting noted a lack of significant progress towards reaching the 2 per cent inflation target, although it added that there had been modest improvements in recent months, highlighted the Fed policy minutes released on Wednesday.
Among the sectoral indices, Nifty Bank deteriorated and remained in red while other sectors that remained in red territary were Financial Services, Media and Private stocks were seen trading in red.
US Federal Reserve Chair Jerome Powell said a further interest rate hike from here is unlikely and the central bank is currently focused on its restrictive monetary policy stance.
US Federal Reserve Chair Jerome Powell said it was prepared to maintain the current interest rate for "as long as appropriate" so as to align the inflation rate with its 2 per cent target.
The US Federal Reserve, in its latest monetary policy meeting, voted to leave the key interest rate unchanged at 5.25-5.50 per cent, keeping the policy rate unchanged for the sixth straight time on the trot.
This week will be dominated by the corporate earnings releases and the highly anticipated Federal Open Market Committee (FOMC) meeting scheduled for April 30 to May 1.
Indian stock market indices traded in the red at Tuesday's opening bell over reported concerns of overheating in the small and midcaps space coupled with profit booking by investors.