Active Stocks
Thu Mar 28 2024 15:59:33
  1. Tata Steel share price
  2. 155.90 2.00%
  1. ICICI Bank share price
  2. 1,095.75 1.08%
  1. HDFC Bank share price
  2. 1,448.20 0.52%
  1. ITC share price
  2. 428.55 0.13%
  1. Power Grid Corporation Of India share price
  2. 277.05 2.21%
Business News/ Market / Mark-to-market/  With Composite PMI moving up, is this the right time for RBI to cut rates?
BackBack

With Composite PMI moving up, is this the right time for RBI to cut rates?

While manufacturing PMI fell to 3-month low in February, that was more than offset by an 8-month high services PMI

The chart shows the HSBC India Composite PMI, a seasonally adjusted monthly index of private sector activity, is at a three-month high. Graphic by Prajakta Patil/Mint (The chart shows the HSBC India Composite PMI, a seasonally adjusted monthly index of private sector activity, is at a three-month high. Graphic by Prajakta Patil/Mint)Premium
The chart shows the HSBC India Composite PMI, a seasonally adjusted monthly index of private sector activity, is at a three-month high. Graphic by Prajakta Patil/Mint
(The chart shows the HSBC India Composite PMI, a seasonally adjusted monthly index of private sector activity, is at a three-month high. Graphic by Prajakta Patil/Mint)

The chart shows the HSBC India Composite Purchasing Managers’ Index (PMI), a seasonally adjusted monthly index of private sector activity, is at a three-month high.

While the manufacturing PMI fell to a three-month low in February, that was more than offset by an 8-month high services sector PMI. Should RBI have cut its policy rate at a time when the Composite PMI is signalling a revival of overall demand?

The central bank can find comfort from the muted level of inflation, with the PMI press release saying: “At the private sector overall, output prices rose at a modest pace that was well below the series average."

Unlock a world of Benefits! From insightful newsletters to real-time stock tracking, breaking news and a personalized newsfeed – it's all here, just a click away! Login Now!

Catch all the Business News, Market News, Breaking News Events and Latest News Updates on Live Mint. Download The Mint News App to get Daily Market Updates.
More Less
Published: 04 Mar 2015, 01:01 PM IST
Next Story footLogo
Recommended For You
Switch to the Mint app for fast and personalized news - Get App