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A pivot in monetary policy in October is likely

Money ControlMoney Control · 21d
A pivot in monetary policy in October is likely

- The forthcoming Monetary Policy Committee (MPC) review could bring about policy easing after 14 meetings of maintaining status quo. - Three factors, geopolitical tensions, US Federal Reserve's interest rate decision, and performance of the southwest monsoon, have delayed the easing of monetary policy. - The market is curious about the perspectives of the new committee members on inflation, growth, and liquidity. - Inflation has dropped below 4% in July and August, creating room for monetary policy easing. - The US Federal Reserve's rate cut has opened the door for rate cuts in emerging markets, including India. - Some segments of the economy are showing signs of weakening growth, reflecting the impact of higher interest rates and tighter lending norms.

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