WPI inflation data signals weak demand & allows RBI to further cut rates to support an economy headed for first annual contraction in more than four decades.
With inflation expected to decline in the coming months, it will allow the Reserve Bank of India to keep the door open for more policy easing to boost credit demand.
The RBI implemented a series of five consecutive rate cuts starting February this year by a cumulative 1.35%, a move, governor Shaktikanta Das says, had surprised markets early in the year.
RBI has already cut interest rates by 135 basis points in five moves this year & last week’s weak data gives it added reason to continue pushing for growth.
Following the transaction which is expected to be completed by November, Dassault Reliance Aerospace Ltd will become an associate company, with Reliance retaining a 49% stake.
From Munir’s point of view, a few bumps here and there is par for the course. He isn’t going to drive his dumper truck to its doom. He wants to use it as a weapon.
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