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Fitch Ratings on Tuesday raised India‘s growth forecast to 7.2 per cent for FY25. Meanwhile, it said that the global growth is expected to slow in 2025 despite monetary easing in 2024.
“The global monetary policy cycle is entering a new phase, in which rates will be falling slowly but to levels that will still be restricting demand. We expect the ECB to cut rates twice more this year, and the Fed to start cutting rates in September with another cut in December. This is later than we had expected, reflecting stalled disinflation momentum in the first four months of the year. But US wage growth is gradually cooling,” said in a report.
“Nevertheless, central banks remain cautious about loosening policy too rapidly, particularly in light of high services inflation. Pressures from rising labour costs and housing rents and the normalisation of relative price trends are keeping services inflation elevated,” it further said.
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