BUSINESS
Union Budget 2025: Focusing on 3Cs – Consolidation, Capex and Consumption
Income tax collection as percentage of GDP has overtaken corporate tax collection at 3.5% of GDP in FY24 vs corporate tax collection at 3.1% of GDP
BUSINESS
RBI Policy Preview | Time for the much-awaited rate cut has come
Full year FY25 GDP growth is likely to be 6.3%, significantly undershooting RBI’s estimate of 7.2%.
BUSINESS
RBI policy preview: No rush for cut but inflation worries likely to ease
Given the positive assessment on growth, RBI is not expected to be in hurry to cut policy rates. The outlook on inflation has improved with some moderation in food inflation pressures.
BUSINESS
Strong growth conditions provide policy space to remain focused on inflation
The RBI is expected to maintain status quo on policy rates and its stance in the August policy.
BUSINESS
How RBI is able to maintain the status quo on rates, stance
The earliest the RBI can cut interest rates is in October 2024. By then, the monsoons will be over and there will be greater clarity on food inflation risks. There will also be more clarity on the Fed policy.
BUSINESS
Stronger growth provides RBI policy space to remain on pause
RBI rate cut cycle to start in August at the earliest. However, it could get delayed, if Fed rate cut cycle gets delayed, Sen Gupta said.
BUSINESS
RBI likely to opt for a prolonged pause until middle of next year
Post that inflation is expected to stay above 5 percent till Q1FY25, which is higher than RBI’s 4 percent inflation target.
BUSINESS
RBI is on active liquidity management mode
Tight liquidity conditions will enable better transmission of past policy rate hikes of 250 bps, which remains incomplete, in the RBI’s assessment
