Medium-Term Outlook Bullish Despite Corrections In Domestic Markets - RBI Bulletin For November 2024

The monthly bulletin of the Reserve Bank of India ( RBI ) on Wednesday took note of the sharp corrections in India's financial markets and said that there is relentless hardening of the US dollar and equities being under pressure from persistent portfolio outflows. The bulletin, however, noted that the medium-term outlook remains bullish as the innate strength of the macro-fundamentals reasserts itself. RBI Bulletin November 2024: Excerpts“Global economic activity remained resilient during Q4:2024 amidst fragile confidence and rising protectionism. In India, the slack in speed observed in the second quarter of 2024-25 is behind us as private consumption is back to being the driver of domestic demand with festival spending lighting up real activity in Q3. Domestic financial markets are seeing corrections with relentless hardening of the US dollar and equities being under pressure from persistent portfolio outflows. The medium-term outlook remains bullish as the innate strength of the macro-fundamentals reasserts itself. Headline CPI inflation rose above the upper tolerance band in October 2024 with a sharp surge in the momentum of food prices along with an increase in core inflation,” the RBI bulletin for the month of November 2024 said.Noting that the seasonal pattern remains mostly stable across major economic variables, the RBI Bulletin for November 2024 said that the Consumer Price Inflation (CPI) faces seasonal pressure from July to November, mainly driven by rising vegetable prices during the monsoon season, while fruit prices tend to peak in the summer months. “On industrial production, most items reach their highest levels in March, whereas consumer durables see a peak in October, coinciding with the festive season,” the bulletin further said.

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Medium-Term Outlook Bullish Despite Corrections In Domestic Markets - RBI Bulletin For November 2024

The monthly bulletin of RBI on Wednesday took note of the sharp corrections in India's financial markets but added that medium-term outlook remains bullish.

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