Group 1 - The Federal Reserve's dovish stance at the Jackson Hole conference is interpreted as a clear signal for a potential interest rate cut in September [1][2] - The U.S. initial jobless claims rose to 235,000, marking the largest increase in nearly three months, indicating a weakening labor market [2] - The Federal Reserve's staff forecasts for real GDP growth from 2025 to 2027 remain consistent with previous predictions, despite concerns over weak consumer spending and adjusted population expectations [2] Group 2 - Key upcoming events include the release of the European Central Bank's July monetary policy meeting minutes and the U.S. second quarter real GDP revision [3] - The U.S. is imposing an additional 25% tariff on imports from India, raising the total tariff rate to 50% [3] - The U.S. core PCE price index for July and the final consumer sentiment index from the University of Michigan for August will be released [3]

Core Viewpoint - The Reserve Bank of India (RBI) unexpectedly cut interest rates by 50 basis points and lowered the cash reserve ratio, marking the third consecutive rate cut, driven by moderate inflation and the need to support economic growth [1][4]. Group 1: Monetary Policy Changes - The RBI has reduced interest rates by a total of 100 basis points since 2025, indicating a shift in monetary policy to support economic growth amid low inflation [1]. - The RBI's stance has shifted back to "neutral," suggesting that future rate adjustments could include both hikes and further cuts [1][4]. - The reduction in the cash reserve ratio is expected to enhance liquidity in the banking system, allowing banks to lend more, which could positively impact project timelines for developers [1][2]. Group 2: Economic Indicators - India's GDP growth for the fourth quarter was reported at 7.4%, surpassing economists' expectations of 6.7%, although the RBI maintained its full-year GDP growth forecast at 6.5%, a significant slowdown from 9.2% in the previous fiscal year [1][2]. - Inflation in India has been on a downward trend, with the RBI projecting the consumer price index for FY2026 at 3.7%, down from a previous estimate of 4% [4]. - The RBI's recent data indicates that price stability is within reach, allowing for a focus on supporting economic growth [4]. Group 3: Market Reactions - Following the RBI's rate cut and cash reserve ratio adjustment, the Indian stock market saw a significant uptick, with the SENSEX index rising by 0.86% after a prior decline [2]. - Key stocks such as BAJAJ FINANCE and State Bank of India experienced notable gains, reflecting positive market sentiment in response to the monetary policy changes [2].