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Economic Buzz: Global economy showed remarkable resilience in 2025, says RBI, inflation shows gradual decline
06-Feb-2026 10:44
After a 25-basis point rate cut in December, the Reserve Bank of India (RBI) on Friday decided to pause the monetary policy softening. The RBI noted that global economy showed remarkable resilience in 2025, aided and supported by trade front‑loading, a milder‑than‑anticipated impact of tariffs, broad fiscal stimulus and accommodative monetary policy. Inflation is on a path of gradual decline, although it remains above target in several advanced economies. US yields are trading with an upward bias amidst receding expectations of imminent rate cuts underpinned by firm economic data. Equities, supported by sustained investment in tech stocks, have advanced, even as fiscal strains, geopolitical uncertainty and monetary policy divergence continue to impart volatility to financial markets.

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