RBI’s August bulletin notes robust rural demand and a sharp drop in Citi inflation to an eight-year low of 1.55%.
The monetary policy rate remains steady at 5.50%, with the central bank signaling vigilance.
While domestic conditions are supportive, U.S. trade policies pose a downside risk.
Favorable monsoons and rural wage growth underpin macro resilience.
The tone balances optimism with caution as global ambiguity persists.
The central bank may anchor liquidity in response to evolving stress.
Policy setting remains hinged on data while watching trade shocks.
Investments and discretionary demand may buffer near-term volatili
ty.
The bulletin reinforces India’s macro fundamentals amid external vuln
erabilities.
RBI’s posture signals flexibility calibrated for evolving global-risk landscapes.