Analysts predict a delay in RBI's rate cuts due to global risks affecting CPI inflation.

Analysts predict a delay in the Reserve Bank of India's (RBI) rate cuts due to rising global risks such as increased crude oil prices, geopolitical uncertainties, and potential delays in the US Federal Reserve's rate easing cycle. These risks could challenge the RBI's goal of bringing the Consumer Price Index (CPI) inflation down to 4% on a durable basis. Motilal Oswal Financial Services anticipates the CPI to average 4.5% in the next financial year, and a rate cut may only occur in late FY25.

April 14, 2024
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