Japan PPI inflation slips to 11-mth low in July
Investing.com - India’s economy remains resilient despite global uncertainty stemming from trade and geopolitical tensions, according to the Reserve Bank of India (NSE:BOI)’s monthly bulletin released Wednesday.
The RBI highlighted that various high-frequency indicators for May 2025 point to robust economic activity across India’s industrial and services sectors, even as the global economy faces significant challenges. The central bank recently cut its key policy rate by 50 basis points, exceeding market expectations, and reduced the reserve ratio for banks.
Agricultural production showed broad-based increases across most major crops during 2024-25, contributing to the economy’s strength. The RBI noted that India’s domestic price situation remains favorable, with headline inflation staying below the target for the fourth consecutive month in May.
Financial conditions in India remain conducive to facilitating efficient transmission of rate cuts to the credit market, according to the bulletin. The central bank indicated that trade policy outcomes in July, after the temporary tariff hiatus ends, along with geopolitical developments, would likely shape medium-term economic prospects.
The RBI’s Monetary Policy Committee stated it would remain data-dependent in charting the future course of monetary policy to strike an appropriate balance between growth and inflation. This approach comes as the central bank focuses on supporting growth amid volatile global conditions while inflation remains under control.
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