In the face of the rising threat of US President Donald Trump, India’s Central Bank on Wednesday put its policy rate at 5.5%.
This was the action in accordance with the expectations of the economists surveyed by the Reuters, and the Reserve Bank of India came after the outsize cut of the BASIS Base points on it. Last meeting in June??
At the last meeting, RBI Governor Sanjay Malhotra said that if a 50-base-point deduction was given, there was a limited place to support the economic policy, and therefore, the RBI could turn its role from “convenient” to “neutral”.
This means that the monetary policy committee, which is the main decision -making organization of the RBI, has carefully assessed the developmental view of the coming data and future economic policy, “Malhotra said.
The Bank of America analysts have said in July 1 of July that the RBI had “removed the Panchabol from the market” with an aggressive cut. They expect that the Central Bank should be paused for now and further policy support will be deployed if there is a major change in the financial point of view.
However, BOFA analysts opened the door for a possible rate by the end of this year – maybe in the fourth quarter of 2025 – once the GDP growth approach became clear.
The inflation rate in June has shocked, India still seems to be able to cut the fresh inflation rate of India. Six years of inferior 2.1%??
In the meantime, the expansion of India’s economy Fast-annual rates than expected 7.4% In the quarter of the quarter ended in the end of March, more than a 6.7% growth estimate by economists. In that quarter, India’s 2024-25 financial year ended, which recorded the overall economic growth. Government estimation??
RBI is the latest moves of India as soon as India navigate Rising stress with the United States On his trade relationship with Russia. On Monday Trump criticized India To buy Russian oils and weapons, threaten high rates and unproductive “penalties”.
– This is braking news, please check back for updates.
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