Caution prevails among global central banks amid a resilient US economy given the dominant role US interest rates can have on setting global interest rates and foreign exchange rates. Although market expectations for a Fed rate cut have been pushed out to September, we do not rule out a summer rate cut. India’s favourable economic performance continues with the latest update and prospects for FY25 as a whole, appear to be bright. Improved agriculture sector prospects, continued government push on CAPEX and improved political stability post elections will support growth in FY25. Inflation continues to ease with the moderation in core and fuel components, despite persistent food price pressures. Given still high food price inflation and with the timeline for rate cuts in the US being pushed back to September, the possibility of the RBI opting for a rate cut earlier than that seems highly unlikely.