How’s the economy doing?
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As per Care Edge ratings, the upcoming April monetary policy meeting comes as headline inflation has eased recently, thanks to lower food prices. Inflation is likely to stay close to the 4% target over the next few quarters.
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While growth picked up in Q3 FY25 to 6.2% from 5.6% in Q2, it’s still below potential. Global uncertainties—like trade tensions, slower growth abroad, and geopolitical risks—remain a drag on momentum.
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Given this background, Care Edge ratings expect the MPC to shift its focus from controlling inflation to supporting growth and go for a 25 bps rate cut
Key things to watch
Here are the top things to watch out for other than the interest rate cut:
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Commentary and measures taken in light of the Global market turmoil on tariff war.
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Liquidity measures. RBI has taken proactive measures to bring down the liquidity deficit
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Inflation and growth expectations with latest data
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Other measures to improve growth and financial adaptability