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HinduBusinessLine

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Trump’s policies may hinder RBI’s rate cut plans: Report

  • The uncertainty around Trump's policies, combined with inflationary pressures, might affect the timing of interest rate cuts by the RBI.
  • Volatility in food prices and the inflationary impact of Trump's policies could delay the easing of domestic inflation, causing a hindrance to RBI's policy easing.
  • Higher inflation can lead to a stronger correlation between stock and bond performance, reducing the effectiveness of bonds as a safeguard against market volatility.
  • Real assets, cash, and gold are suggested as effective hedges against inflation, while defensive sectors and high-quality stocks can provide stability during inflationary periods.

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