Firms say easing inflation could spur demand

COMPANIES ACROSS SECTORS such as real estate, automotive and consumer goods have welcomed the Reserve Bank of India's (RBI's) temporary pause to rate hikes.

- VIVEAT SUSAN PINTO, SWARAJ BAGGONKAR & RAJESH KURUP

This is the second time in a row that the central bank is holding its key repo rate at 6.5%, providing much-needed relief to consumers and firms. The RBI on Thursday trimmed its inflation estimate marginally to 5.1% from 5.2% projected earlier for FY24.

"I feel that the monsoon is perhaps one of the key reasons why the RBI is keeping inflation on watch. The food inflation over the next couple of months would be crucial, even though a good harvest is expected. On the flip side, the Australian Weather Bureau has warned of the El Nino effect, which is a sign of caution," Soumya Rajan, founder and CEO at multi-family office Waterfield Advisors, said.