The Reserve Bank of India expects the Indian economy to grow at 6.5% in 2025-26, underpinned by robust fundamentals. With inflation projected to remain below the medium-term target of 4% in 2025-26, the policy focus has shifted toward supporting growth.To foster a conducive liquidity environment, the RBI frontloaded policy easing in June by cutting the repo rate 50 basis points and the Cash Reserve Ratio by 100 basis points. These moves are intended to boost credit while managing liquidity risks effectively.
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