RBI's 'Modest Cut' Expected in October Meeting: DBS Bank

The video discusses the slight increase in inflation due to food prices and sporadic monsoon effects. Despite this, inflation remains below the central bank's target, which is more focused on supporting growth amid economic challenges. The central bank is expected to cut rates to stimulate growth, while the government balances fiscal measures. Factors like tight liquidity, real estate slowdown, and non-banking issues have impacted consumer demand, but improvements in liquidity are expected to help in the coming year.

What is the primary reason for the expected slight increase in inflation?

• Increased housing costs

• Higher food prices

• Increased gold prices

• Rising oil prices

Why is the central bank unlikely to change its policy direction despite the inflation bump?

• Inflation is above the target

• Inflation is still below the target

• The central bank is focused on inflation control

• The central bank has no room for policy changes

What is the central bank's expected action in the October meeting?

• Maintain current rates

• Increase interest rates

• Implement a modest rate cut

• Introduce new fiscal policies

What has been a significant factor in the decline of India's credit quality?

• Decreased consumer demand

• Increased foreign investment

• High inflation rates

• Long-term economic growth

Which sector's issues have contributed to the slowdown in consumer demand?

• Technology sector

• Non-banking sector

• Agricultural sector

• Manufacturing sector