Mumbai, June 26 -- According to RBI's June bulletin, protracted trade policy uncertainties and rising trade barriers pose the risk of significantly scarring the global economy. The intensifying geopolitical tensions too may further debilitate the already weakened growth impulses. In this context, the trade policy outcomes in July, after the temporary tariff hiatus is over, and the future course of geopolitical events would likely shape the medium-term economic prospects.
Further, amidst a challenging global environment and heightened uncertainty, the Monetary Policy Committee (MPC) decided to reduce the policy repo rate by 50 bps to 5.50 per cent to stimulate domestic private consumption. A likely undershoot of inflation to below the targe...