The Reserve Bank of India’s surprise announcement to buy up to ₹1.25 trillion in government bonds in May marks a sharp escalation in its liquidity operations. This follows more than ₹7.1 trillion in durable liquidity injections since December and signals a decisive attempt to address emerging signs of economic softening.In April, the RBI revised its GDP growth forecast for 2025-26 to 6.5% from 6.7%, though several economists now expect growth to slip below 6%.
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