RBI Cuts Benchmark Rate by 25 Basis Points

Recent economic indicators suggest that interest rates in the US may decline more than anticipated due to weaker economic data and political uncertainty, according to Craig Inches from Royal London Asset Management. This perspective contrasts with the prevailing belief that inflation will remain high, limiting the ability of central banks to reduce rates. In India, the Reserve Bank's recent 25 basis points cut to 6.25% is seen as supportive of the government's budget measures aimed at boosting consumption and economic growth. Industry leaders believe this monetary easing will enhance domestic demand and stabilize financial conditions. The RBI's commitment to maintaining liquidity also indicates a proactive approach to support the economy amidst global uncertainties. Overall, the interplay of fiscal and monetary policies in both the US and India highlights a concerted effort to navigate current economic challenges.