• The 10-year, 3-year and 1-year Gsec yields have continued their path towards convergence as was displayed in the Nov’23 data.
• The gap between the 1-year MCLR rates of HDFC and SBI has continued to widen since October 2022.
• The CPI has continued its downward trend after spiking in July 2023, showcasing the RBI’s commitment towards achieving its target of keeping inflation below 4%.
• The RBI has kept the repo rate unchanged at 6.5% for the seventh time in a row.
• The earliest rate cut is only likely in the October 2024 meeting unless growth shows a negative surprise in the intervening amid a shallow rate cut cycle limited to 50 bps at best.