Australia’s Economic Growth Slows in Q3 Despite Strong Investment Activity 
Gold Prices Edge Higher as Markets Await Key U.S. PCE Inflation Data 
Dollar Holds Steady as Markets Shift Focus to 2026 Rate Cut Expectations 
Asian Markets Mixed as Fed Rate Cut Bets Grow and Japan’s Nikkei Leads Gains 
European Oil & Gas Stocks Face 2026 With Cautious Outlook Amid Valuation Pressure 
Germany’s Economic Recovery Slows as Trade Tensions and Rising Costs Weigh on Growth 
Asian Currencies Steady as Rupee Hits Record Low Amid Fed Rate Cut Bets 
China Urged to Prioritize Economy Over Territorial Ambitions, Says Taiwan’s President Lai 
BOJ Faces Pressure for Clarity, but Neutral Rate Estimates Likely to Stay Vague 
Asian Currencies Steady as Markets Await Fed Rate Decision; Indian Rupee Hits New Record Low 
Gold Prices Steady as Markets Await Key U.S. Data and Expected Fed Rate Cut 
Asia’s IPO Market Set for Strong Growth as China and India Drive Investor Diversification 
Oil Prices Hold Steady as Ukraine Tensions and Fed Cut Expectations Support Market 
U.S. Futures Steady as Rate-Cut Bets Rise on Soft Labor Data 
Oil Prices Rise as Ukraine Targets Russian Energy Infrastructure 
Asian Currencies Edge Higher as Markets Look to Fed Rate Cut; Rupee Steadies Near Record Lows 
RBI Holds Interest Rates Steady, Signals Potential Rate Cut in Upcoming Months
The Reserve Bank of India (RBI) kept interest rates unchanged at 6.5% during its recent policy meeting, as widely anticipated. However, in a significant shift, the central bank moved to a neutral stance, signaling the possibility of a rate cut in the near future.
RBI Maintains 6.5% Policy Repo Rate
For the tenth consecutive meeting, the RBI held its policy repo rate at 6.5%, with five of the six members of the Monetary Policy Committee voting in favor of this decision. The move was expected, but the shift to a neutral stance opens the door for a potential rate reduction.
RBI's Neutral Stance: A Less Hawkish Approach
RBI Governor Shaktikanta Das highlighted that while inflation remains a concern, the central bank is adjusting its approach. The decision to shift to a neutral monetary policy stance reflects the bank's confidence in navigating inflation, but risks remain. Geopolitical conflicts, adverse weather conditions, and rising commodity prices pose challenges to achieving further disinflation.
"The balance between inflation and growth has created favorable conditions for a change in our monetary stance to neutral. However, we must remain cautious due to inflationary risks from external factors," Governor Das stated during a live press conference.
Potential Rate Cut on the Horizon?
A Reuters poll conducted before the RBI meeting indicated that many economists expected the central bank to adopt a neutral stance. This shift has raised the possibility of a 25 basis point rate cut during the December meeting, depending on inflation trends and economic conditions.
India's Economic Outlook
Despite high interest rates and persistent inflation, India's growth story remains robust. The country continues to be one of the fastest-growing major economies, with an annual GDP growth rate of around 7% over the past three years. However, growth is expected to moderate as global economic conditions soften.
Governor Das reaffirmed that while inflation had decreased in recent months, it remains above the RBI's target of 4%. The September CPI reading is anticipated to show a significant increase, largely driven by rising food prices, but inflation is expected to trend lower in the upcoming quarters due to favorable crop yields.
