Rate Cuts

The RBI slashed rates by 100 basis points this year, but how much of that cut has actually reached your loan EMIs or deposit returns? With lending rates dropping and liquidity improving, the real question is: How much has the rate cut truly impacted consumers—and will it continue? 

FMCG firms see enhanced demand amid RBI rate cut

Companies expect the government’s liquidity measures, coupled with a favourable monsoon forecast, will boost rural demand and support overall consumption recovery.

Trade war's impact, key growth indicators: How global economy will shape up next week

US trade-policy fingerprints are expected to become more apparent as soon as next month, according to many economists

Vault matters | Can banks handle a third successive rate cut?

Despite strong macro signals for a repo rate cut, banks face financial strain and tightening credit risk. A cautious approach to further rate reductions is advisable to safeguard financial stability

World Street | Powell hints at smaller cuts ahead, Aston Martin's profit warning, PepsiCo's new venture and more

From US drugmaker Pfizer's stake sale in Sensodyne maker Haleon to Beijing joining the list of Chinese cities easing home-buying restrictions, here's a look at some of the major developments from across the world.

Asia stocks hold steady as more rate cuts loom

Markets were still basking in the afterglow of the Federal Reserve's half-point rate cut, with futures implying a 51% probability it will deliver another outsized move in November

Dollar rebounds after Fed goes big on rate cut

The U.S. dollar strengthened on Thursday, bouncing back from an earlier drop after the Federal Reserve implemented a larger-than-expected half-percentage-point rate cut.

Rate cuts may be round the corner as economic growth drivers are losing momentum

Growth is softening and the global rates cycle is pivoting. RBI may deliver the first rate cut next month and lower policy rate by a percentage point in FY25

Gold hits record highs as investors bet on rate cuts

US and European buyers position for lower borrowing costs after sitting out much of precious metal’s rally

Nomura forecasts RBI to slash interest rates by 75 bps in FY25

Nomura noted that despite some moderation on quarter, India's GDP growth still remained strong, driven by fixed investment, a positive contribution from net exports and the resilient industrial and services sectors.

More than meets the eye: Can low inflation, slow output make the case for a rate cut?

Some economists have pushed their forecast for a cut to 2025

Big business signals to US Federal Reserve it’s either rate cuts or job cuts

The clear message from this earnings season is that companies are only keeping headcount steady in anticipation of lower borrowing costs ahead

Gold sprints to all-time high as Fed rate-cut hopes boost demand

Spot gold gained 1.6% to $2,460.99 per ounce by 11:32 a.m. ET (1532 GMT), while U.S. gold futures for August delivery rose 1.5% to $2,465.80 per ounce

The US Federal Reserve should cut rates now. Sadly, it won’t

A stellar CPI report Thursday confirms that inflation is just about slayed. Now, policymakers need to think about the labour market

FOMC minutes raise concerns over sticky inflation; push 'higher-for-longer' narrative on rate cuts

The US Fed policymakers expressed apprehensions over the rate-cut timeline as inflation remains above the US central bank's 2 percent target, despite cooling significantly.

Nomura joins Goldman, JPMorgan in predicting Fed rate cut in July, sees global rate-cuts revving up

The brokerage's economists also pointed out that rate-cutting cycle picking up would make it easier for other central banks to follow and that this would be particularly relevant to the emerging markets (EM).

US rate cuts look like a distant dream, India’s stock markets face a tough time ahead

Market conditions point to the risk of near term corrections but if that plays out then it may prove to be an opportunity for long term investors

Powell tells ‘60 minutes’ Fed is wary of cutting rates too soon

Chair of the Federal Reserve Jerome Powell stated that policymakers will probably wait until after March to lower interest rates in an effort to make the central bank's justifications more understandable to the general public.

Hot stock rally stirs fears over wall street’s big rate-cut bets

Equity rally challenges Powell as S&P 500 hits records, fueled by rate-cut expectations. Financial conditions loosen, posing concerns for Fed.

Rate Cuts: The last mile of inflation has a bad reputation

If 2022 was about removing accommodation, 2023 was about shifting rates beyond neutral to a region that restrains business and consumers. Now comes the delicate part where actions and communication need to be more nuanced. It's important not to conflate a reluctance to be pushed around by traders as a rejection of cutsbloo

RBI Governor says topic of rate cut not on table at this time, focus to bring inflation to 4%

Reserve Bank of India Governor Shaktikanta Das further said, inflation has moderated steadily from the high of 7.8 percent after Russia-Ukraine war and it has come the RBI’s target range of 2-6 percent, but the target is being 4 percent.

Charting the Global Economy: Fed to lead pivot toward interest-rate cuts

Year of rate cuts anticipated, led by the Federal Reserve. Traders bet on Fed's aggressive approach as inflation control poses challenges.

Tech stocks gain ahead of Q3 earnings, Nifty IT index rises 1.2%

Despite expectations of a muted Q3, analysts are betting on hopes of an improved macro environment for the IT sector as central banks hop on to the rate-cutting cycle.

RBI researchers warn against hasty rate cuts

The State of the Economy report underlines the fact that the objective of aligning inflation with the target on a durable basis is far from assured 

Federal reserve pause is still coming, just not yet

The core consumer price index decelerated a bit in March from a month earlier but likely not enough to convince policymakers they have done enough to control inflation