Key Highlights
Global
- With growth and core inflation cooling, US Fed expected to be broadly done with rate hikes.
- Dollar strength however resurfaced following healthy US macro data.
- ECB’s revision to GDP growth and inflation signals a possible end to rate hikes.
- Japan’s Q2 GDP growth revised lower; Inflation stays above BOJ target.
- JPY depreciates sharply; JGB yields test BOJ’s new upper yield cap.
Domestic
- Urban demand remains encouraging, rural demand shows recovery signs.
- Core inflation eased to a 39-month low in August; Retail inflation stayed above the 6% mark.
- Though food inflation moderated, prices of cereals and pulses continued to be elevated.
- Corporate profitability improved in Q1 FY24 amid easing raw material costs.
- Net sales saw muted growth owing to weak overseas demand and lower commodity prices.
- Merchandise exports remained under pressure; Services exports held up well.
