Daily Digest Market Movers: Indian Rupee remains weak ahead of key US inflation data

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  • FTSE Russell said on Tuesday that Indian sovereign bonds will be added to its Emerging Markets Government Bond Index (EMGBI), following a similar move by JP Morgan and Bloomberg Index Services.
  • The Reserve Bank of India’s (RBI) Monetary Policy Committee (MPC) decided to keep the repo rate unchanged at 6.5% for the tenth consecutive meeting but changed the policy stance to neutral from withdrawal of accommodation.
  • The Indian central bank kept the CPI inflation estimate for FY25 unchanged at 4.5% while maintaining the Gross Domestic Product (GDP) growth estimates for FY25 at 7.2%.
  • According to minutes released Wednesday, the Federal Open Market Committee (FOMC) members agreed to cut interest rates in September but were unsure how aggressively to go, ultimately deciding on a half-percentage point move in an effort to balance inflation concerns with labor market worries.
  • Fed Boston President Susan Collins said on Wednesday that it was “prudent” for officials to cut rates by a half percentage point last month as inflation eases and the economy becomes more vulnerable to shocks.
  • San Francisco Fed President Mary Daly noted on Wednesday that she "fully" supported the Fed’s half-of-a-percentage-point interest-rate cut in the September meeting. Daly added that one or two more rate cuts this year are likely if the economy evolves as she expects. 
  • Dallas Fed President Lorie Logan argued on Wednesday that she supported last month's substantial interest-rate cut but favored smaller reductions going forward as there were "still real" upside risks to inflation. 


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