Gold and Silver Prices Dip as Markets Await Key U.S. Economic Data 
Asian Stocks Slide as AI Spending Fears and Global Central Bank Decisions Weigh on Markets 
Gold and Silver Surge as Safe Haven Demand Rises on U.S. Economic Uncertainty 
Wall Street Futures Slip as Tech Stocks Struggle Ahead of Key US Economic Data 
BoE Set to Cut Rates as UK Inflation Slows, but Further Easing Likely Limited 
Asian Stocks Slide as AI Valuation Fears and BOJ Uncertainty Weigh on Markets 
Asian Currencies Trade Sideways as Dollar Weakens Ahead of Key U.S. Data 
U.S. Stock Futures Edge Higher as Micron Earnings Boost AI Sentiment Ahead of CPI Data 
Oil Prices Slip in Asia as 2026 Supply Glut Fears and Russia-Ukraine Talks Weigh on Markets 
Australian Consumer Sentiment Slumps in Early December as Inflation Fears Resurface 
Japan Exports to U.S. Rebound in November as Tariff Impact Eases, Boosting BOJ Rate Hike Expectations 
Asian Currencies Slip as Dollar Strengthens; Indian Rupee Rebounds on Intervention Hopes 
South Korea Warns Weak Won Could Push Inflation Higher in 2025 
RBA Unlikely to Cut Interest Rates in 2026 as Inflation Pressures Persist, Says Westpac 
U.S. Dollar Slips Near Two-Month Low as Markets Await Key Jobs Data and Central Bank Decisions 
Bank of Japan Poised for Historic Rate Hike as Inflation Pressures Persist 
India’s Central Bank Interest Rate Cut Anticipated
India's central bank, the Reserve Bank of India (RBI), is poised to cut its key policy rate by 25 basis points to 6.25% in December, according to a recent Reuters poll of economists. This decision aims to address the slowing economic growth amid fluctuating inflation rates.
Current Economic Context
In September, inflation unexpectedly rose to 5.49%, but it is forecasted to average 4.9% this quarter, potentially dropping to 4.6% by early 2024. This decline in inflation offers the RBI room to ease its monetary policy, especially since the bank has maintained interest rates at their highest level since early 2019 over the past ten meetings.
Majority Opinion on Rate Cut
In an Oct. 21-29 Reuters poll of 57 economists, 30 anticipate the RBI will lower the repo rate at its meeting from December 4-6. The remaining 27 economists predict no change. Miguel Chanco from Pantheon suggests that manageable inflation will support this decision, noting that upcoming GDP reports could influence the committee’s outlook.
Future Projections and Considerations
While India is projected to remain the fastest-growing major economy, growth is expected to taper to 6.9% this fiscal year and 6.7% next year, down from 8.2% in 2023/24. Analysts indicate that, despite the growth rate, inflation is likely to remain above the RBI's 4% target until early 2026, limiting the scope for further rate cuts.
Conclusion
Overall, while the likelihood of a December rate cut is increasing, experts believe the RBI will proceed cautiously, waiting for clearer signs that inflation dynamics are stable.
