As the US Federal Reserve paused the rate cut cycle, the Reserve Bank of India (RBI) has started with liquidity easing and the rationale for 25bps rate cut in February is compelling, industry watchers said on Thursday.
The domestic benchmark indices opened flat on Thursday as the US Federal Reserve meeting voted unanimously to pause the rate cut cycle, which started last September and has delivered 100 bps of cut to date.
This is a significant improvement as it comes after significant outflows in the preceding months.
Foreign investors have staged a strong comeback to Indian equities with a net investment of Rs 24,454 crore in the first week of December.
The US Federal Reserve's latest rate cut signals a nuanced approach to managing economic stability amid shifting pressures on inflation, employment, and political changes.
The decision by the US Federal Reserve to cut interest rates marks a pivotal moment for the global economy, signaling a shift in monetary policy after years of tightening.
The latest remarks from the US Federal Reserve Chair, Jerome Powell, mark a significant turning point in America’s monetary policy landscape.
Powell made the remarks on Friday during an economic policy forum, underscoring that inflation is "much closer" to the central bank's target of 2 per cent, Yonhap news agency reported.
The US Federal Reserve’s decision to maintain interest rates within the 5.25 per cent-5.50 per cent range and signalling only one rate cut in 2024 reveals a nuanced approach to economic management.
The US Federal Reserve’s decision to maintain interest rates between 5.25 and 5.50 per cent has left the financial world in a state of uncertainty.
