The central bank forecast real GDP growth for next fiscal year at 6.7%, and inflation rate at 4.2%.
The Reserve Bank of India has cut its key interest rate for the first time in nearly five years, as cooling inflation has offered room to stimulate the slowing economy.Sanjay Malhotra, governor of the Reserve Bank of India , during a news conference in Mumbai, India, on Wednesday, Dec. 11, 2024. India's newly-appointed central bank governor Malhotra said he will look to uphold stability and continuity in policy in his role.
The rate cut was widely expected and marked RBI's first interest rate cut since May 2020 when the country battled the pandemic-inflicted downturn. Indian stocks fell with the benchmark Nifty 50 index shedding as much as 0.5%. The yield on 10-year bonds rose by more than 4 basis points to 6.7%. Though growth is expected to recover from the low of the second quarter ended September, it is still "much below that of last year,"
Asia Economy World Markets Business News
United States Latest News, United States Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
CNBC's Inside India newsletter: Could Musk make it worse for India?Card-description
Read more »
CNBC's Inside India newsletter: A slowing economy hasn't dimmed India's allure at DavosIndian prime minister Narendra Modi had plans for India become a $5 trillion economy by 2025. The country is still over $1 trillion short of this target.
Read more »
CNBC's Inside India newsletter: Can a consumption boost save India's slowing economy?The message from India’s Budget 2025 was subtle, yet clear: the middle-income class has to spend more to boost corporate earnings and spur the economy.
Read more »
US Dollar Softens After Fed Holds Rates, GDP Growth Misses ForecastsThe US Dollar weakened after the Federal Reserve (Fed) maintained its policy stance, removing language about inflation progress and signaling a data-dependent approach to future rate decisions. The US GDP growth slowed to 2.3% in Q4, missing forecasts.
Read more »
Economy 'solid, not great' as gov't reports 2.8% growth in 2024 GDPThe Commerce Department on Thursday reported both fourth-quarter and full-year 2024 gross domestic product figures.
Read more »
Economy 'solid, not great' as gov't reports 2.8% growth in 2024 GDPThe Commerce Department on Thursday reported both fourth-quarter and full-year 2024 gross domestic product figures.
Read more »