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RBI Policy
The Reserve Bank of India (RBI) has kept the repo rate unchanged at 5.50%, maintaining a balanced stance between growth and inflation.
- GDP Growth Forecast: Revised upward to 6.8% for FY 2025โ26.
- Inflation Forecast: Lowered to 2.6%.
- The current account deficit has narrowed to 0.2% of GDP, reflecting strong export recovery and reduced imports.
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Government Expenditure
The Finance Ministry reaffirmed its commitment to increase capital spending to stimulate infrastructure growth, manufacturing, and job creation.
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Rupee and Bond Markets
The Indian Rupee is expected to remain stable, supported by foreign inflows from upcoming IPOs such as Tata Capital and LG Electronics India.
Bond yields are likely to ease as states have reduced borrowing requirements this quarter.