Mumbai, June 30 -- Reserve Bank of India or RBI has released the June 2025 issue of the Financial Stability Report today. The central bank noted that elevated economic and trade policy uncertainties are testing the resilience of the global economy and the financial system. Financial markets remain volatile, especially core government bond markets, driven by shifting policy and geopolitical environment. Alongside, existing vulnerabilities such as soaring public debt levels and elevated asset valuations have the potential to amplify fresh shocks.

Despite an uncertain and challenging global economic backdrop, the Indian economy remains a key driver of global growth, underpinned by sound macroeconomic fundamentals and prudent macroeconomic p...