BAJAJ BROKING
The RBI is set to maintain the policy rate at 6.50% in October 2024, focusing on inflation stability and economic growth. A rate cut may be on the horizon in December, depending on inflation trends.
As the Reserve Bank of India (RBI) prepares for its October 2024 monetary policy announcement, the likelihood of a rate cut appears minimal. For the tenth consecutive time, the Monetary Policy Committee (MPC) is expected to maintain the policy repo rate at 6.50%. The RBI has adopted a cautious stance due to fluctuating food prices and broader inflationary trends.
While core inflation remains stable at around 4%, concerns over food price volatility, driven by unseasonal rainfall and crop damage, are expected to influence the committee’s decision. The RBI seeks more clarity on inflation trends before moving towards monetary easing.
Looking ahead, a potential rate cut may be considered during the December policy meeting, provided inflation moderates and new crop arrivals bring down high vegetable prices. The Indian economy is projected to grow at a robust 7.3-7.4% in FY25, making the current macroeconomic environment favourable for growth.
Liquidity management remains a priority but reducing the Cash Reserve Ratio (CRR) at this stage would send an overly dovish signal. Thus, the RBI is likely to continue fine-tuning liquidity operations rather than make drastic changes.
This policy meeting will remain focused on inflation control, food price stabilization, and economic growth, with a rate cut possibly being deferred until later in the year.
Disclaimer: Investments in the securities market are subject to market risk, read all related documents carefully before investing.
This content is for educational purposes only. Securities quoted are exemplary and not recommendatory.
For All Disclaimers Click Here: https://bit.ly/3Tcsfuc
Share this article:
List of Top Battery Stocks in India
05 Oct, 2024 | 4 Min. read
UPS vs NPS vs OPS: Comprehensive Pension Guide (2024)
05 Oct, 2024 | 1 Min. read
SEBI's Revolutionary Ideas Restructure Stock Market
05 Oct, 2024 | 5 Min. read
Guidelines for Recovery of Shares from IEPF
05 Oct, 2024 | 5 Min. read
Top 5 Financial Ratios That All Stock Investors Should Grasp
05 Oct, 2024 | 7 Min. read
Semiconductor Stocks: Top Picks for 2024 and Market Insights
05 Oct, 2024 | 8 Min. read
What is an IEPF Claim: Meaning & Eligibility Criteria
05 Oct, 2024 | 7 Min. read
RBI October 2024 Policy Preview: Rate Cut Unlikely
05 Oct, 2024 | 1 Min. read
Shiv Texchem IPO- Know Investment Opportunity & How to Apply?
05 Oct, 2024 | 1 Min. read
Garuda Construction and Engineering IPO- How to Apply in Minutes?
04 Oct, 2024 | 5 Min. read
Share Market Today | Gift Nifty Indicates Negative Opening For Indian Markets
04 Oct, 2024 | 4 Min. read
Oil Prices Rise Amid Concerns Over Israel-Iran Conflict
04 Oct, 2024 | 2 Min. read
RBI Launches ULI: Transforming Loan Access
August 27, 2024 | 4 Min. read
Textile Sector in India
September 20, 2024 | 5 Min. read
List of IPOs with DRHPs Filed
November 30, 2023 | 3 Min. read
Aditya Birla Group
September 28, 2023 | 10 Min. read
Bajaj Housing Finance Ltd IPO: Things Smart Investors Need to Know
September 05, 2024 | 4 Min. read
Budget Stock Ideas 2024-2025 | Stocks to Buy Today
July 24, 2024 | 4 Min. read
IPO Eligibility Criteria : Full Details
March 15, 2024 | 6 Min. read
What Is the Lock-In Period in IPOs?
October 18, 2023 | 6 Min. read
Godfrey Phillips Announces 2:1 Bonus Shares
September 16, 2024 | 7 Min. read
Jindal Group- A Comprehensive Analysis
September 27, 2024 | 7 Min. read
Level up your stock market experience: Download the Bajaj Broking App for effortless investing and trading