India Manufacturing PMI rises "unexpectedly" in November. RBI expected to cut interest rates on 5 December.
A Happy Surprise: India’s manufacturing activity picked up unexpectedly in November to 51.2 from a two-year low of 50.6 in the previous month, beating market expectations of 49.8.
The rise in manufacturing PMI was on the back of increase in new orders and output and further expansion in export sales. Reuters
View India Manufacturing PMI chart here.
No End in Sight: The Central Bank is expected to cut interest rates for the sixth straight time on 5 December.
A cut in the repo rate would, however, be immediately transmitted to retail borrowers as the RBI has forced banks to link loans to an external benchmark instead of a self-determined reference rate.
Economic growth has slowed to 4.5% in the September quarter, its weakest pace since 2013, despite a cumulative 135bps cut in policy rates this year. And RBI governor Shaktikanta Das, in his last policy, had said that the RBI was willing to keep rates soft as long as it takes to revive the economy. ToI
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