RBI’s pause may continue, Dalal Street to tread cautiously
Business new tamfitronics MUMBAI: Wednesday’s 50 basis points rate cut decision by the US Federal Reserve may not prompt an immediate response from RBI in its Oct policy, though it could benefit India by easing pressure on the rupee and lowering borrowing costs for those with access to global markets.In the equity market, the rate cut at the upper end of the 25-50 basis points (100 bps=1 percentage point) is expected to force investors to be cautious, with the sharp cut being an indication that the US economy may be weakening faster than what is visible now.The 50 bps rate cut has been the first one in over four years.“The Fed’s move is expected and may slightly reduce bond yields, as it has been largely factored in. RBI will focus on controlling inflation...
