India presses the price cuts with increased pressure Trump

The central bank in India kept its stability at 5.5 % on Wednesday in the face of the increasing tariff threats by US President Donald Trump.

The move was in line with the expectations of the economists included in Reuters, and it comes after the Indian Reserve Bank made a significant reduction of 50 basis points in The last meeting in June.

In the statement of monetary policy, RBI Sanjay Malhotra said in a monetary policy statement that the decision was unanimous. He pointed out that although the challenges of global trade remain, cases of geopolitical uncertainty “may have given up.”

the Elegant 50 The index decreased by 0.18 % after the decision, while Sensex decreased marginally. the rupee It is marginally strengthened for trade in 87.72 against the dollar.

The latest step comes from RBI while India moves The increasing tensions with the United States On its commercial relations with Russia. on monday, Trump criticized India To buy oil and Russian weapons, high customs tariffs and unlimited “punishment” threaten.

While local growth is still “flexible”, the central bank indicated that external demand expectations are still “unconfirmed amid continuous tariff advertisements and commercial negotiations.”

“The opposite winds emitted from long geopolitical tensions, and the global uncertainty and fluctuations in global financial markets continue to have risks to growth expectations.”

During the last RBI meeting, Malhotra said there is a limited field of monetary policy to support growth due to a 50-Basis reduction in June. As such, RBI will turn his position into “neutral” from “equal”.

This means that the Monetary Policy Committee, the main decision -making committee in RBI, will carefully assess the “data received and advanced expectations for planning the future path of monetary policy,” said Malhotra.

Analysts at Bank of America said in a note on July 28 that RBI “took out Punchebow from markets” by providing an early and aggressive reduction. They expect the central bank to stop at the present time, and more policy support will be published only if there is a major shift in macroeconomic expectations.

However, the Bofa analysts left the door open to reduce a possible rate later this year – probably in the fourth quarter of 2025 – once the gross domestic product growth expectations become more clear.

RBI has also maintained the gross domestic product growth forecast for its financial year 2026 by 6.5 %, but reduced inflation expectations to 3.1 %, down from its previous 3.7 % projection.

Reading of the last inflation in India is still supportive of prices, as the inflation rate in June has reached The lowest level in six years by 2.1 %.

The RBI Monetary Policy Committee also said on Wednesday that inflation expectations in the near -term “have become more benign than expected”, while inflation in 2025 is expected to remain much lower than the central bank’s goal of 4 %.

At the same time, India’s economy expanded in a Fur is expected an annual average of 7.4 % In the quarter ending in March, sharply higher than growth expectations by 6.7 % by economists in a Reuters poll.

This quarter represents the end of the fiscal year 2024-25 in India, which recorded a total economic growth of 6.5 %, in line with Government appreciation.