- India’s real GDP grew 7.6% on-year in the second quarter of the fiscal year compared to 7.8% in the previous quarter. This was higher than the RBI’s forecast at 6.5% at its monetary policy meeting on 6th Oct’23.
- Inflation outlook in the near-term would be influenced by uncertain food prices. According to the RBI’s latest households’ inflation expectations survey, a larger share of households expect higher food prices in the next 3-12 months.
- The recent monetary policy statement by the FOMC ended the calendar year with a dovish pause and signaled rate cuts in 2024. U.S Fed chairman Jerome Powell’s comments suggested that the Fed is willing to cut rates before U.S. inflation drops to 2%. A cut in the U.S. Fed funds rate is expected to impart some support to the Indian rupee.
Overall industrial output growth stood at 11.7% on-year in Oct’23 compared to 6.2% the previous month, on account of a favorable base effect.
TruQuest is knowledge series launched by TruBoard Partners providing succinct updates and views on:
- Liquidity outlook
- India’s macro economic view
- Trends within the infrastructure, Real Estate and Renewable Energy sectors
- Impact analysis of new regulations and policies on lending and capital flow
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