CPI INFLATION IN DECEMBER 2024
- Credit Rating Agency in India
- Economy Overview
- CPI INFLATION IN DECEMBER 2024
Given the macroeconomic scenario of decelerating GDP growth and inflation coming under some control, it stands to reason that a 25 basis points rate cut to 6.25 % by the RBI is on in the February 5-7, 2025, MPC Statement.
The household savings have been declining on a secular basis because inter-alia of the inflationary spiral, unattractive rate of interest on deposits, alternative mechanisms of deployment of investible funds, such as, mutual funds, the stock market and other asset classes, for example, real estate and gold. Hence, we do not see any immediate uptick in household savings since it is a function of various forces and factors.