Record low inflation raises repo rate cut expectations
pre-market1 source ↓written by the desknot a recommendation
- in October
- 0.25%
- before the December
- 6.40%
- if tariff agreements
- 6.30-6.35%
Record low retail inflation at 0.25% in October has sparked expectations of a repo rate cut. Market experts predict the benchmark 10-year G-Sec yield may soften towards 6.40% before the December MPC meeting, potentially declining further to 6.30-6.35% if tariff agreements with the US materialize. This could attract FPI flows into Indian markets.
• CPI inflation below expectations
• Anticipated easing of monetary policy
• Positive implications for G-Sec yields
Not investment advice. For informational purposes only.