Women (Silhouetted) walks through the Reserve Bank of India (RBI) logo, which is on display at the Global FinTech Festival in Mumbai.
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The central bank stabilized its policy interest rate at 5.5% on Wednesday in the face of rising tariff threats from U.S. President Donald Trump.
The move is in line with expectations from economists surveyed by Reuters, after the Reserve Bank of India provides a 50 basis point cut on it The last meeting in June.
RBI Governor Sanjay Malhotra said at the last meeting that the RBI will turn its position into a “neutral” of “adaptive” given the limited room for monetary policy and therefore support growth, given the 50-based layoffs, the RBI will turn its position into “adaptive” “neutral”.
Malhotra said this means that the Monetary Policy Committee is a key decision-making body for the Reserve Bank of India and will carefully evaluate “incoming data and evolving prospects to list future monetary policy processes”.
Bank of America analysts said in a July 28 note that the Reserve Bank of India has “taken the fist from the market” by providing early, aggressive cuts. They expect the central bank to stop at the moment and will only deploy further policy support if there is a major change in the macroeconomic outlook.
But once the outlook for GDP growth becomes clearer, BOFA analysts may slow down later this year (probably in the fourth quarter of 2025).
India’s latest inflation reading still supports lower tax rates, June’s title inflation is fresh Six-year low of 2.1%.
Meanwhile, India’s economy is 7.4% faster than expected annual rate In a Reuters poll, economists grew significantly higher than the 6.7% increase. That quarter marks the end of India’s fiscal year 2024-25, with an overall economic growth rate of 6.5%, which is the same as Government estimates.
The latest move by the Reserve Bank of India when sailing in India is Tensions with the United States rise Trade ties with Russia. on Monday, Trump criticizes India To buy Russian oil and weapons, higher tariffs and unspecified “fins” are threatened.
– This is breaking news, please check it out for updates.
