India hits pause on rate cuts as Trump ramps up pressure

The Central Bank of India kept its policy rate constant on Wednesday by US President Donald Trump on Wednesday.

The movement was compatible with the expectations of the economists who participated in the survey by Reuters, and the Indian Reserve Bank came after a 50 basis points at the last meeting in June.

During the last meeting, the Governor of the RBI Sanjay Malhotra said that money policy was a limited area to support growth, and therefore it would change the RBI’s stance from “Accomment” as “neutral”.

This means that RBI’s key decision -making body will carefully evaluate the developing appearance to “draw the data and the future course of future monetary policy.”

Analysts in Bank of America said that on July 28, the RBI made an early, aggressive deduction from the markets. They expect the Central Bank to stop for now, and more policy support will be deployed if there is a major change in macroeconomic appearance.

However, when the Boba analysts became clear when the GDP growth appearance became clear, in later hours of this year – in the fourth quarter of 2025 – leaving the door open for a possible ratio.

India’s latest inflation reading, the inflation rate in June seems to be supportive for a rate deduction that reaches 2.1%of the lowest level of six years.

In the meantime, the Indian economy expanded by 7.4% annually in the quarter of the quarter of the quarter and more than 6.7% growth by economists in a Reuters survey. This quarter pointed out the end of the 2024-25 financial year, when India has achieved a general economic growth of 6.5%. The government’s estimation.

The last move of the RBI comes while wandering around the tensions with the United States through India’s trade ties with Russia. On Monday, Trump criticized India for buying Russian oil and weapons for threatening higher tariffs and a “punishment”.

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