Oil Prices Hit Four-Month High as Geopolitical Risks and Supply Disruptions Intensify 
Fed Confirms Rate Meeting Schedule Despite Severe Winter Storm in Washington D.C. 
MAS Holds Monetary Policy Steady as Strong Growth Raises Inflation Risks 
U.S. and El Salvador Sign Landmark Critical Minerals Agreement to Boost Investment and Trade 
China Holds Loan Prime Rates Steady in January as Market Expectations Align 
China Factory Activity Slips in January as Weak Demand Weighs on Growth Outlook 
Bank of Japan Likely to Delay Rate Hike Until July as Economists Eye 1% by September 
RBA Deputy Governor Says November Inflation Slowdown Helpful but Still Above Target 
Canada’s Trade Deficit Jumps in November as Exports Slide and Firms Diversify Away From U.S. 
Wall Street Slides as Warsh Fed Nomination, Hot Inflation, and Precious Metals Rout Shake Markets 
Indonesian Stocks Plunge as MSCI Downgrade Risk Sparks Investor Exodus 
U.S. Urges Japan on Monetary Policy as Yen Volatility Raises Market Concerns 
BOJ Rate Decision in Focus as Yen Weakness and Inflation Shape Market Outlook 
The Reserve Bank of India (RBI) has kept its benchmark interest rate unchanged at 5.5% during its latest monetary policy review, maintaining a neutral stance as the economy grapples with growing global trade headwinds. The decision follows a cumulative 1% rate cut earlier in 2025.
RBI Governor Sanjay Malhotra highlighted that while India’s economy remains resilient, external challenges—particularly steep U.S. tariffs—pose significant risks to growth. He noted that the central bank would wait for greater clarity on the tariff landscape before considering further policy adjustments.
India’s economic growth, which reached an impressive 7.8% in the June quarter, is expected to slow in the coming months as overseas demand weakens under tariff pressures. U.S. President Donald Trump’s 50% trade tariffs on Indian goods, imposed over the country’s continued Russian oil imports, have added new challenges for the export sector.
Despite these headwinds, the RBI upgraded its GDP growth outlook for fiscal 2026 to 6.8%, up from 6.5%, citing supportive government measures. Malhotra said that recent cuts in the Goods and Services Tax (GST) by the Narendra Modi government, alongside easing food prices, were expected to cushion the impact of weaker exports.
Inflation prospects also appear favorable. The RBI lowered its consumer price index (CPI) inflation forecast for fiscal 2026 to 2.7%, down from 3.1%, pointing to benign price pressures in the near term. Malhotra emphasized that GST cuts and cooling food prices would help sustain this softer inflationary environment.
While global trade uncertainties weigh heavily on India’s outlook, the central bank is signaling that it has room for more monetary easing if conditions deteriorate. For now, the RBI’s cautious approach underscores its priority of balancing growth support with external risks.
