RBA Unlikely to Cut Interest Rates in 2026 as Inflation Pressures Persist, Says Westpac 
EU Approves €90 Billion Ukraine Aid as Frozen Russian Asset Plan Stalls 
Yen Near Lows as Markets Await Bank of Japan Rate Decision, Euro Slips After ECB Signals Caution 
BoE Set to Cut Rates as UK Inflation Slows, but Further Easing Likely Limited 
New Zealand Business Confidence Hits 30-Year High as Economic Outlook Improves 
U.S. Stocks End Week Higher as Tech Rally Offsets Consumer Weakness 
Asian Stocks Slide as AI Spending Fears and Global Central Bank Decisions Weigh on Markets 
Oil Prices Steady in Asia but Headed for Weekly Loss on Supply Glut Concerns 
South Korea Warns Weak Won Could Push Inflation Higher in 2025 
Japan Inflation Holds Firm in November as BOJ Nears Key Rate Hike Decision 
Industrial production of India declined during the month of October, owing to high base effects amid slump in manufacturing and mining activities. Following the government’s demonetization move, the country is expected to witness a further decline in the indicator.
India’s industrial production declined -1.9 percent y/y in October, faster than -0.9 percent registered in Q3 2016. Manufacturing and mining activity slumped in the month, with electricity generation contributing to the headline with a 1.1 percent y/y rise.
On the use-based end, capital goods extended decline at -26 percent y/y, from -24 percent in Q3, while consumer goods production was a mild negative on slower non-durables output. Thus far in FY16-17, industrial production growth has averaged -0.3 percent compared to last year’s full year’s pace of 2.5 percent.
Since the demonetization initiative, auto sales slumped in November, as discretionary incomes and consumers’ purchasing power was under strain due to the cash shortage. October manufacturing PMI rose to a two-year high on new domestic orders while exports moderated. Novemeber PMIs have since moderated.
These factors suggest that weak October numbers are likely to stretch into November. Incoming data will remain important to gauge the true fallout of the banknote ban on economic activity, after the RBI assumed a transitory impact in its projections earlier this week.
"We look for annual IP growth to average 1.0-1.5 percent this year with downside risks vs 2.5 percent last year. Nov inflation numbers, due tomorrow, are likely to ease further, undershooting the central bank’s projected path," DBS commented in one of its recent research note.
Meanwhile, the USD/INR traded at 67.56, up 0.12 percent on the National Stock Exchange.
