Fed must manage rate cut timing judiciously in election year; Oil may top $90/bbl: Peter McGuire

Money Control · 1y ago

Fed must manage rate cut timing judiciously in election year; Oil may top $90/bbl: Peter McGuire

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The US Federal Reserve has maintained its guidance of three rate cuts for the year, bringing more certainty to the market and sparking a rally in equities and gold. The first rate cut is predicted to come in June, and the Fed's dovish stance has boosted confidence in the market. Oil prices are also expected to continue rising, possibly surpassing $90 per barrel. Gold and Bitcoin are performing well, with gold showing strong momentum and Bitcoin likely to increase in value by the end of the month. The Bank of Japan's decision to hike interest rates may still make the yen carry trade attractive, but attention should be paid to the trajectory of the US dollar.

Most Gulf central banks follow Fed in cutting rates

VCCircle · 8m ago

Most Gulf central banks follow Fed in cutting rates

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Following the Federal Reserve's decision to lower US interest rates, most central banks in the Gulf Cooperation Council (GCC) have also cut their key interest rates. The Gulf's oil and gas exporters usually follow the lead of the Fed since their currencies are mainly pegged to the US dollar. Lower rates in the GCC could support growth in sectors such as real estate and domestic spending. The cuts are expected to improve resilience in the broader economy, as most regional economies have implemented plans to diversify revenue sources and boost non-oil growth.

Moneycontrol Pro Panorama | Will inflation hold back RBI from cutting interest rates?

Money Control · 9m ago

Moneycontrol Pro Panorama | Will inflation hold back RBI from cutting interest rates?

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Retail inflation in September reached its highest level for the year 2024, causing concern among market participants. Despite positive global cues and a drop in crude oil prices, benchmark stock market indices are trading with slight losses. The Reserve Bank of India's (RBI) recent shift in policy stance to neutral has raised expectations of an interest rate cut in the next meeting, but the latest inflation data may complicate that decision. Excessive monsoon rains have damaged crops and disrupted supply chains, leading to a spike in food and vegetable prices. The RBI will need to balance inflation concerns with signs of demand moderation and slowdown in the domestic economy. Additionally, external risks, such as the US presidential election and global economic slowdown, could influence the central bank's decision-making.