Earliest timeline for India cenbank rate cuts stays June - ICICI Securities PD

ICICI Securities

26/12/2023 02:37

* Scope for rate easing from India's Monetary Policy
Committee
(MPC) stays limited due to inflation outlook, ICICI Securities
Primary Dealership says
    * "...It is probable that MPC may shift the stance in April
meeting and potentially ease monetary policy by June. That is
the earliest timeline for rate cuts in our reckoning,"
economists at ICICI Securities PD say in a note.
    * MPC has maintained status quo on rates since April, and
highlighted inflation concerns in December meeting minutes
    * ICICI Securities PD further conservative policy making may
imply
a more delayed start to RBI rate cuts
    * As a base case, it expects Fed to start cutting rates in
April-June quarter
    * "Fed easing by March is only a necessary and not a
sufficient
condition for April rate cut" - note 


 (Reporting by Dharamraj Dhutia)
 ((dharamraj.dhutia@tr.com))