Interest rates in much of the world are likely to be headed lower in 2024. The Fed’s March 20th meeting sent the strongest signal yet towards lower interest rates for 2024. Although Chair Powell offered no timeline for the initial cut, market expectations point to a potential reduction starting in June. Domestically economic growth in Jan-Feb likely remained strong albeit with some moderation in growth when compared to Q3 due to normalising of the net indirect taxes. With FY25 around the corner, this issue of the monthly monitor also looks into some dominant themes for the year including policy continuity, the government’s continued focus on investment growth, expectation of limited rate cuts in FY25 and continued uncertainties in the global economy. In the first FY25 monetary policy meeting in April, we do not expect any changes in the policy rate. We see the first rate cut is likely to happen in Q2 FY25 with a higher probability of a rate cut in August (vs June) as the central bank will have clarity on the progression of the monsoon. However, the room for significant cuts is limited with food inflation expected to rise in H2 FY25.