US Federal Reserve Chair Jerome Powell gave a strong indication that it was time for the US central bank to reduce interest rates as inflation rates were aligning with its target.
The easing inflation and weakening job market trends in the US, as revealed in the recent figures will push the Federal Reserve to cut interest rates which will lead to lower rates in developing countries like India, indicates S&P Global on Friday.
The majority of the Fed members in the latest monetary policy meeting indicated of a policy rate cut in the September meeting, mentioned the Fed minutes released on Wednesday.
The SBI's latest report highlights that the once-dominant "Follow the Fed" mantra appears to be waning, with an increasing number of central banks prioritizing domestic economic conditions over synchronizing with U.S. rate decisions, signalling a shift in global monetary policy dynamics.
The Reserve Bank of India (RBI) may begin lowering interest rates around October, provided that external factors like weather conditions and international commodity prices do not cause any disruptions, the credit rating agency, Crisil said in its report.
BOB also cautioned that the rate cut could be further delayed if inflationary pressures persist. With the Monetary Policy Committee (MPC) voting 4-2 in favour of maintaining the current policy stance, the decision underscores a growing divide among its members regarding the direction of mone
Economists and Industry bodies have welcomed RBI's move to keep the policy repo rate unchanged they said that maintaining the repo rate provides stability and predictability in the financial markets.
In India, a key emerging market economy, analysts are pointing out that loosening monetary policy through interest rate cuts in the US amid weak growth projections could drive in investment inflows into India.
U.S. Federal Reserve Chair Jerome Powell hinted a possible interest rate cut in September if economic conditions align with expectations. The fed made these remarks during the latest Federal Reserve meeting which decided to keep the federal funds rate unchanged at 5.25 per cent to 5.5 per ce
The price of gold, which opened in the low USD 2,300s in early July, quickly surpassed the USD 2,400 mark and achieved a high of USD 2,483 this Wednesday, according to Metals Focus report.