RBI Holds Steady Amid Global Trade Turbulence
The Reserve Bank of India maintained its policy interest rate at 5.5%, amid trading tensions from US tariff actions. Despite monsoon rains bolstering domestic growth, global trade uncertainties persist. The decision underscores RBI's focus on inflation control, highlighting India's economic resilience in a challenging global landscape.
- Country:
- India
The Reserve Bank of India (RBI) decided to keep its policy interest rate unchanged at 5.5% on Wednesday, amid ongoing global trade uncertainties influenced by US President Donald Trump's tariff measures. RBI Governor Sanjay Malhotra led the six-member rate-setting panel in this unanimous decision.
While a bountiful monsoon and the upcoming festive season are anticipated to invigorate the Indian economy, Malhotra cited continued concerns over global trade scenarios. He did not directly address US tariff actions but noted recent tariffs on Indian exports and potential hikes for India's oil purchases from Russia.
RBI's inflation forecast was revised down to 3.1% for the current fiscal year, with CPI inflation predicted to rise above 4% by the end of 2025-26. Despite external pressures, India is poised for steady growth, maintaining a GDP forecast of 6.5% for 2025-26. The RBI remains committed to balancing supportive growth policies with price stability.
(With inputs from agencies.)
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