Emkay Global: RBI May Revise FY24 CPI Estimates Upwards

The video discusses the Reserve Bank of India's (RBI) cautious stance due to inflation concerns, primarily driven by volatile food prices. It highlights the global and domestic factors affecting inflation, with a focus on perishables like tomatoes. The RBI's inflation and growth forecasts are likely to be adjusted due to unexpected inflation spikes. The video also covers the RBI's intervention in currency markets to stabilize the rupee and the impact of foreign investments. Finally, it addresses the timeline for potential rate cuts, suggesting they may be delayed until next year due to ongoing inflation risks.

What is the primary reason for the RBI's cautious stance as discussed in the video?

• Stable global central bank policies

• Volatile perishable goods inflation

• Global economic slowdown

• High interest rates

According to the video, what is the expected duration of high tomato prices?

• 2.5 to 2.6 fortnights

• 3 to 4 months

• Indefinite

• 1 to 2 weeks

What measure has been taken to manage cereal inflation domestically?

• Increasing import tariffs

• Banning rice exports

• Reducing interest rates

• Subsidizing cereal production

How might the RBI's inflation forecast be affected by recent food price trends?

• It will be eliminated

• It will be revised downwards

• It may be revised upwards

• It will remain unchanged

What has been the effect of RBI's intervention in the currency market?

• Increased domestic liquidity

• Decreased domestic liquidity

• Strengthened rupee against the dollar

• Weakened rupee against the dollar

Why has the rupee not moved significantly despite foreign investments?

• Lack of foreign interest

• High domestic inflation

• Strong global currencies

• RBI's consistent intervention

When is the RBI expected to consider cutting rates according to the video?

• Immediately after the Fed

• In the summer of next year

• By the end of this year

• Not before 2025