RBI Governor Warns of Global Risks While Maintaining Policy Flexibility

The Reserve Bank of India Governor highlighted the central bank's readiness to respond flexibly to evolving macroeconomic conditions, while cautioning about risks from global market volatility and trade policy uncertainties. This statement comes as the RBI cut rates by 25 basis points to 6.25%, marking the first reduction in nearly five years. The Governor emphasized that excessive volatility in international financial markets and trade policies could impact both growth prospects and inflation trajectory, particularly amid renewed global trade tensions following recent political developments. This balanced approach reflects the RBI's commitment to maintaining economic stability while remaining adaptable to changing conditions.

Source: Reserve Bank of India