This comes amid looming uncertainties as Trump’s tariff regime kicks in. RBI also revised its growth estimates for FY25-26, lowering GDP estimates by 20 points to 6.5% from 6.7%.
RBI Monetary Policy Committee member Ram Singh says Budget 2025 provides opportunity for govt to show it is doing its part to address growth-inflation dynamics.
RBI Governor Shaktikanta Das said that while slowing growth was a concern, the next quarters would look better. Inflation, though, is a more immediate concern & would ease only in Q4.
Change in stance signals possibility of rate cuts, potentially as early as December, depending on inflation trends & global economy. Growth projection for FY 2024-25 retained at 7.2%.
Israel-Iran conflict, along with outlook on inflation & growth in an uncertain global environment will be key areas of concerns for new members of the reconstituted committee.
Four out of six members vote to maintain repo rate while two vote for 25 basis point reduction. RBI governor cites rise in headline inflation in June, primarily driven by food component.
Monetary Policy Committee Friday kept the repo rate unchanged at 6.50% for an eighth straight policy meeting, in a continued attempt towards bringing down inflation to 4% target.
Repo rate was raised by 250 basis points between May 2022 and February 2023. Robust growth to provide space for monetary policy to remain focused on bringing inflation down to 4% target.
IRIS Lavan was in the region for the International Fleet Review held last month and ‘sought urgent docking in Kochi citing technical issues,’ it is learnt.
Trump has ushered in the age of humiliation. His method is to push around America’s friends rudely and publicly. He knows none of them can afford to fight back.
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