{
}
Q2 GDP growth has unexpectedly plummeted to 5.4%, raising doubts about the finance ministry's full-year estimate of 6.5-7%. This slowdown, attributed to demand deficits and external factors, may prompt a rate cut by the Monetary Policy Committee, despite rising retail inflation at 6.2%. The RBI's tightening of unsecured credit is further complicating the economic outlook, as inflation pressures threaten consumption and corporate investment.
Rate-setters are facing pressure to consider a rate cut in the upcoming monetary policy meeting, with MPC member Nagesh Kumar advocating for this move. He argues that a reduction could stimulate demand and private investment, citing easing inflation, sluggish demand, and actions by other central banks, including the US Federal Reserve, as key factors.
Rural demand in India has recently surged, primarily driven by increased borrowing, but concerns linger over urban demand and economic conditions. Maruti Suzuki's Chairman highlighted a decline in sales of sub-Rs 10 lakh cars due to stagnant incomes and rising fuel prices, while Nestle's MD noted sluggish growth in the FMCG sector, with food and beverage growth dropping to 1.5-2%. The RBI is urged to consider a rate cut as demand across major sectors moderates.
Nagesh Kumar
People
The information provided herein is generated by experimental artificial intelligence and is for informational purposes only.
gdp growth plummets raising concerns over economic outlook and rate cuts
05:27 30.11.2024
monetary policy debate intensifies as rate-cut advocates gain traction
02:49 25.11.2024
rural demand struggles amid rising costs and stagnant income levels
Indian Rupee
Nestlé India Limited
Maruti Suzuki India Limited
IND
Nagesh Kumar
R C Bhargava
Suresh Narayanan
Show more
11:17 30.10.2024
Trending
Subcategory
Corporate News
Stock Market Updates
Industry Trends
Industry Mergers & Acquisitions
Finance Mergers & Acquisitions
Global Financial Events
Banking Regulations
Global Trade Developments
Retail and Consumer Goods
Domestic Politics
Central Bank Actions
CEO Changes
Startups & Entrepreneurship
Market Analysis and Predictions
Government Policies
Workplace Trends
Elections & Campaigns
Government Economic Policies
Inflation and Monetary Impact
Supply Chain Management
Countries:
Companies:
Tesla, Inc.
Barclays PLC
JPMorgan Chase & Co.
Deutsche Bank Money Market PP
Apple Inc.
UniCredit S.p.A.
Banco BPM S.p.A.
Credit Suisse Strategic Income I
The Goldman Sachs Group, Inc.
UBS Group AG
Lloyds Banking Group plc
BNP Paribas SA
Banco Santander, S.A.
SpaceXCoin USD
CREDIT AGRICOLE
Amazon.com, Inc.
Credit Agricole
Berkshire Hathaway Inc.
Reinsurance Group of America, Incorporated
Google Inc.
Currencies:
United States Dollar
Euro
Swiss Franc
British Pound Sterling
Chinese Yuan
Japanese Yen
Indian Rupee
South Korean Won
Canadian Dollar
Australian Dollar
Hong Kong Dollar
Offshore Chinese Yuan
Singapore Dollar
Mexican Peso
Vietnamese Đồng
Indonesian Rupiah
Thai Baht
Norwegian Krone
Swedish Krona
Filipino Peso
People: