BoE Policymaker Alan Taylor Signals No Need for Interest Rate Hike Amid Iran War Inflation Risks 
Indonesia Plans Higher Asset Yields to Boost Rupiah and Restore Investor Confidence 
Gold Surges Above Key EMAs, Bulls Eye Resistance Amidst Bullish Momentum 
RBA Minutes Signal Australia Central Bank Remains Ready to Raise Interest Rates if Inflation Persists 
The government is ‘doubling down’ on its social media ban. But bigger penalties for platforms aren’t enough 
Open-Source AI Models Gain Ground as Enterprises Seek Lower-Cost Alternatives, Citi Says 
Despite its best efforts, Iran won’t be able to toll the Strait of Hormuz. Here’s why 
Morgan Stanley Names BAE Systems Top European Defence Stock Despite Lower Price Target 
Supreme Court Backs Lisa Cook, Defends Federal Reserve Independence Against Trump Firing Attempt 
BOJ Rate Hike Expectations Rise as Weak Yen and Strong U.S. Jobs Data Increase Pressure 
Taiwan Central Bank Likely to Keep Interest Rates Unchanged Through 2027 
Announcement of CRR Cut
On December 6, 2024, the Reserve Bank of India (RBI) announced a cut in the Cash Reserve Ratio (CRR) by 50 basis points (bps), lowering it from 4.5% to 4%. This is the first time the CRR has been reduced since March 2020. The move aims to increase cash flow in the banking system, which has been tight due to high foreign exchange interventions and a recent drop in GDP growth to 5.4% for the July-September quarter.
Impact on Bank Liquidity
The CRR cut is expected to free up around ₹1.1 lakh crore to ₹1.2 lakh crore in bank liquidity, enabling banks to lend more money and support economic growth. The RBI is signaling a desire to ease monetary policy without changing the repo rate, which remains at 6.5%. This decision comes even as inflation has risen to 6.2% in October, exceeding the central bank's acceptable limit.
Economists say that this CRR cut could help banks lower interest rates for borrowers, which may encourage spending and investment in a tough economic situation with low growth and inflation concerns. The RBI is trying to balance supporting economic growth while controlling inflation as it deals with these complex challenges
Technicals-
Major resistance- 85
Near-term resistance - 84.80
Minor support- 84.20/83.60, 83.25
Trend reversal level- 83
