Indian stock markets opened on a strong note on Thursday as investors welcomed the U.S. Federal Reserve's decision to cut interest rates by 25 basis points.
The Central Bank of the UAE (CBUAE) has decided to cut the Base Rate applicable to the Overnight Deposit Facility (ODF) by 25 basis points, from 4.40 per cent to 4.15 per cent, effective from Thursday, 18 September.
The Indian stock market closed with strong gains on Tuesday, driven by a rally in IT, pharma, and FMCG stocks, as investor sentiment improved amid rising expectations of a US interest rate cut later this month.
According to Bank of Baroda, floating car loan interest rates now start from 8.15 per cent* per annum (earlier 8.40 per cent per annum), with immediate effect.
The Reserve Bank of India's decision to lower interest rates has led to a marked decline in borrowing costs for companies, thereby boosting debt serviceability across several sectors, according to a report by the Bank of Baroda (BoB).
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The Reserve Bank of India (RBI) is unlikely to cut interest rates in its October policy meeting, as inflation in August 2025 is expected to rise above 2 per cent, according to a report by the State Bank of India (SBI).
The US Federal Reserve will have to time its interest rate cuts carefully as new tariffs could push inflation higher next year, making policy choices over the next three to six months particularly crucial, according to a report by Union Bank of India.