Economy

US inflation rose to 3.8% in April, its highest since May 2023, as energy costs surged due to the Iran conflict. The jump complicates Federal Reserve plans to cut interest rates and raises costs for consumers and borrowers.

HSBC has cut its India GDP growth forecast for FY27 to 6%, blaming an energy crisis and deficient rainfall. The bank also expects the RBI to deliver two rate cuts to support slowing growth.

HSBC has slashed its India GDP growth forecast by 140 basis points, flagging an energy price shock and a deficit rainfall outlook as the main risks. The cut puts HSBC well below the RBI's official 6.9% growth projection for 2026-27, with rural demand and manufacturing margins most exposed.

Analysts warn that India faces the risk of a below-normal monsoon, which could squeeze farm output and lift food prices. With food comprising a large share of India's inflation basket, a weak season may limit RBI's room to cut rates and drag on rural consumption and growth.

A strong U.S. jobs report removes near-term pressure on the Federal Reserve to cut interest rates. War-driven supply disruptions and rising energy prices are now the bigger inflation threat, keeping rate cuts off the table.

The IMF Executive Board approved Pakistan's latest programme review, releasing $1.32 billion in financing and bringing total disbursements to roughly $4.8 billion.

The US added 115,000 jobs in April, beating expectations, with unemployment steady at 4.3 percent. But record-low consumer confidence signals households are increasingly worried about the outlook, which could dampen spending and pressure corporate earnings ahead.

Bank of America economists now expect the Federal Reserve to hold rates steady through 2025 and 2026, with the first cut not coming until 2027. The forecast, driven by a hawkish Fed stance and sticky inflation, would keep borrowing costs high for mortgages, business loans, and consumer credit far longer than markets

A strong U.S. jobs report has further narrowed the Federal Reserve's case for cutting interest rates, with inflation still above its 2% target. Borrowers face a longer wait for relief on mortgages, credit cards, and loans as the Fed is likely to hold rates steady.

India's state-run oil companies are absorbing large daily losses as global crude prices stay high and the West Asia crisis strains supply routes. A fuel price hike is being weighed to ease the financial burden, though no timeline has been announced.

U.S. nonfarm payrolls rose 115,000 in April, more than double the 55,000 Dow Jones consensus forecast, with unemployment steady at 4.3%. The beat reduces pressure on the Federal Reserve to cut rates quickly and eases near-term recession concerns.

U.S. employers added 115,000 jobs in April, beating expectations while unemployment stayed low. Despite the largest global oil supply disruption in history, the American labor market has so far shown little damage.

U.S. employers added 115,000 jobs in April, nearly double the 65,000 analysts had forecast. The stronger-than-expected result reduces immediate pressure on the Federal Reserve to cut interest rates and signals the labor market has not yet weakened sharply.

The U.S. economy added 115,000 jobs in April, with unemployment at 4.3%, as geopolitical tensions with Iran clouded the outlook. The soft hiring pace puts pressure on the Federal Reserve to weigh whether rate cuts are needed to sustain growth.

India's state-run oil firms absorbed an estimated Rs 30,000 crore in losses by keeping petrol, diesel, and LPG prices frozen during a global energy shock. Government excise duty cuts helped partially offset the shortfall, but financial stress on these companies is now significant.

U.S. gasoline prices have surpassed $4.50 a gallon, the highest level since 2022. That adds direct cost pressure on household budgets and could push broader inflation higher through rising transport and logistics expenses.

Cleveland Fed President Beth Hammack said interest rates will stay on hold for an extended period, citing high economic uncertainty and a risk that an "inflationary mindset" becomes entrenched after five years of sharp price increases.

The April U.S. jobs report releases Friday, with markets expecting a labor market that is slowing but still stable. The data will directly shape expectations for Federal Reserve rate cuts and offer a read on how hiring has held up amid tariff pressures.

Jerome Powell and Kevin Warsh are set to share the Fed's policy table for the first time a sitting and former chair have done so in nearly 80 years. Any public disagreement between the two could disrupt market expectations on interest rates and Fed credibility.

Minneapolis Fed President Neel Kashkari said further US interest rate hikes "could be warranted" if the Middle East conflict worsens inflation, likely through higher energy prices. The comments push back against market expectations of rate cuts and signal the Fed remains open to tightening if price pressures resurface.