Dollar Weakens Ahead of Expected Federal Reserve Rate Cut 
Asian Markets Mixed as Fed Rate Cut Bets Grow and Japan’s Nikkei Leads Gains 
RBI Cuts Repo Rate to 5.25% as Inflation Cools and Growth Outlook Strengthens 
BOJ Signals Possible December Rate Hike as Yen Weakness Raises Inflation Risks 
Spain’s Industrial Output Records Steady Growth in October Amid Revised September Figures 
Asian Currencies Edge Higher as Markets Look to Fed Rate Cut; Rupee Steadies Near Record Lows 
Japan’s Finance Minister Signals Alignment With BOJ as Rate Hike Speculation Grows 
Germany’s Economic Recovery Slows as Trade Tensions and Rising Costs Weigh on Growth 
Bank of Korea Holds Interest Rates Steady as Weak Won Limits Policy Flexibility 
RBA Reassesses Pricing Behaviors and Policy Impact Amid Inflation Pressures 
Oil Prices Rise as Ukraine Targets Russian Energy Infrastructure 
U.S. Stocks Rise as Cooler Inflation Boosts Hopes for Fed Rate Cut 
The Reserve Bank of India (RBI) is expected to soften its monetary stance to "neutral" from current "calibrated tightening" at the February 7 rate meeting, according to the latest research report from Scotiabank.
Further, rising real interest rate will hamper investment activity and prompt the market to increasingly price in a RBI rate cut at the April rate meeting. The central bank’s softer tone would be supportive of local government bonds and prop up the INR afterwards.
India’s CPI inflation eased to 2.19 percent y/y in December from 2.33 percent a month ago. Although the nation’s retail inflation may rebound somewhat in the January-March period, it is expected to slide again from April onwards on the back of the base effect.
Earlier, data released last Friday showed that the nation’s industrial production growth dropping to a 17-month low of 0.5 percent y/y in November.
"Meanwhile, we keep a close eye on India’s fiscal position ahead of the 2019 general election due by May. The BJP-lead NDA government will likely give cash handouts to farmers along with tax exemptions to shore up voter support ahead of polls, after losing control of key states in assembly elections held last month," the report commented.
