The government has launched NPS Vatsalya, a scheme that aims to promote retirement savings from an early age. While this is a good initiative, parents should be aware that liquidity is a constraint in this product. Read the Main story by Sanjay Kumar Singh To understand the pros and cons.
The second article, by Namrata Kohli, highlights The growing appeal of mixed media art in the Indian art market. Readers can gain insights into the unique opportunities and challenges of investing in mixed media.
Car dealers are offering attractive discounts to boost sales during this festive season. If you are thinking of applying for a loan, verify Paisabazaar.com table showing interest rates offered by major financial companies in India.
Most Indian investors’ portfolios tend to be growth-oriented. If you want to counter this trend, invest in a value fund. Consider Morningstar review of ICICI Pru Value Discovery Fund, one of the most popular funds in this category.
NUMBER OF THE WEEK:US Federal Reserve cuts rates by 50 basis points
The US Federal Reserve has cut the federal funds rate by 50 basis points (bps) from 5.25-5.5 percent to 4.75-5.00 percent, the first reduction since 2020. The move, taken amid concerns about the labor market and ahead of the presidential election in November 2024, is expected to be followed by another 50-bp cut by the end of 2024 and a further 100-bp reduction in 2025.
Inflation in the United States has fallen significantly from a peak of 9.1% in mid-2022 to a three-year low of 2.5% in August, close to the Federal Reserve’s 2% target. Now that inflation is almost at target levels, the Fed is focused on supporting a weakening labor market and achieving a “soft landing” to curb inflation without triggering a sharp recession.
The global trend of falling interest rates could complicate the Reserve Bank of India’s (RBI) efforts to control inflation, which it has targeted at 4.5% for fiscal year 2024-25. The RBI aims to keep inflation within a 4% range, plus or minus 2%. An accelerated rate-cutting cycle globally could lead to higher capital inflows into India, which would benefit equity and debt markets, but would complicate currency management and could create inflationary pressures by expanding the domestic money supply.
First published: September 20, 2024 | 7:51 am IS
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