The Fed Policy Update

In line with market expectations, the Fed maintained status-quo on the rates front. The Fed Funds Rate remains unchanged at 4.25% to 4.50%; over the course of three preceding policy meetings, the Fed has cut rates collectively by 1%. The resilience in labour markets and the recent uptick in headline inflation numbers were cited as […]

Brent

Brent currently trading at US$ 74 still remains in a range with little or no incentive to move either way.Therefore, the ceiling at the moment is defined by US$75-US$80. This is despite the geo-politicaltensions and the impact it would have had on oil prices. In the earlier updates also, it was indicated thatthe demand from […]

Currency Markets

The currency markets continue to reflect immense amount of dollar strength, and this is the trend thatis sustaining after the two rate cuts from the Fed, and also as there is going to be a regime change inthe US as early as Jan 25. Further developments would depend on the actual trajectory of US officialrates. […]

Headline Inflation Falls, Perceived Risks Still Persist

The CPI based inflation for the month of December 2024 was reported at 5.22%, as compared to the previous month’s number of 5.48%. The seasonal fall in food prices the headline numbers within the RBI’s target range. The core inflation too eased marginally. The Consumer Food Price (CFP) inflation for Dec’24 was reported at 8.39% […]