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Below the Quote on Pre MPC by Mr. Ajit Banerjee President and Chief Investment Officer, Shriram Life Insurance Company

"CPI inflation has eased to 0.25% y-o-y in October vs 1.44% y-o-y in September on account of fall in food prices, GST rate cuts and favourable base-effect India Q2 GDP data print at 8.2% is way beyond the street expectations which was in the north of 7% handle again after 7.8% in Q1. Based on the initial details that has been released it can be inferred that even though the impact of favourable low base impact exists, but most encouraging aspect has been the private demand component rising meaningfully (9.3%yoy) and is strongest in seven quarters. Private GDP exceeds government consumption expenditure that contracted over the quarter, even though strong government capex continues to play a dominant role.

With a comfortable inflation trajectory in place, accompanied with robust GDP growth numbers expected for Q2 FY26, we are of the view that the RBI has space to cut rates further by 25-bps in the upcoming policy meeting even now."

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