ExchangeDEX+

Buy Crypto Markets Spot Futures500X Earn Events

Gold Bar & BTC Giveaway2000g

India’s central bank lowered its benchmark policy rate by 25 basis points to 5.25% on Wednesday, matching expectations from economists. The Reserve Bank of India’s monetary policy committee delivered the reduction unanimously, citing “weakness in some key economic indicators,” according to RBI governor Sanjay Malhotra.The decision comes as headline inflation remains subdued and is expected to be revised lower in the first quarter of 2025. Malhotra said headline inflation had eased significantly.Inflation forecasts revised downwardThe RBI projected Consumer Price Index inflation at 2% for FY2025-26, reflecting a substantial downward revision. For the first quarter of FY2026-27, inflation is projected at 3.9%, compared with the previous estimate of 4.5%. Malhotra noted that rising precious metal prices could add marginally to headline CPI but said risks to the forecast remain “evenly balanced.”Malhotra had warned at the previous policy meeting in October that, despite significantly moderated inflation in the first quarter, growth could slow in the latter half of the financial year due to global trade uncertainties. Those risks remain, even as the RBI adjusts its inflation outlook lower.Strong GDP supports rate cut decisionIndia’s economy expanded 8.2% in the July–September quarter, marking a six-quarter high and outpacing consensus expectations. Real GDP rose to ₹48.63 lakh crore compared with ₹44.94 lakh crore in the same period last year. Growth has now averaged 8.0% in the first half of FY2025-26.Against that backdrop, the RBI sharply raised its GDP forecast for the full financial year to 7.3%, up from 6.8%. For the current quarter, the central bank now expects growth of 6.7%, compared with its earlier projection of 6.4%.Malhotra said the “growth-inflation balance continues to provide policy space,” allowing the committee to proceed with easing despite broader economic caution.Industrial weakness and falling exports raise concernsEven with strong headline GDP numbers, several indicators point to an emerging slowdown. Industrial activity in October fell to a 14-month low, while HSBC’s manufacturing PMI slipped to a nine-month low in November. Export performance has also weakened. Shipments to the US — one of India’s largest markets — declined 8.5% year on year in October to $6.3 billion, marking the second consecutive monthly decline. Total outbound shipments fell 11.8% to $34.38 billion.The decline follows Washington’s move to impose a 50% tariff on Indian goods in August. In response, New Delhi reduced goods and services tax rates in September to support domestic demand ahead of the festive season.GST collections improved sharply in October to ₹1.95 trillion, up 4.6% from a year earlier, but momentum faded in November, when gross collections totalled ₹1.7 trillion — a modest 0.7% increase.The Indian rupee has weakened in recent days, slipping beyond the psychologically important 90-per-dollar level on Wednesday before recovering some ground. The currency volatility adds another layer of uncertainty as policymakers balance the need to support growth without jeopardising stability.The post India’s Central Bank lowers rates, citing weak pockets in economic data appeared first on InvezzIndia’s central bank lowered its benchmark policy rate by 25 basis points to 5.25% on Wednesday, matching expectations from economists. The Reserve Bank of India’s monetary policy committee delivered the reduction unanimously, citing “weakness in some key economic indicators,” according to RBI governor Sanjay Malhotra.The decision comes as headline inflation remains subdued and is expected to be revised lower in the first quarter of 2025. Malhotra said headline inflation had eased significantly.Inflation forecasts revised downwardThe RBI projected Consumer Price Index inflation at 2% for FY2025-26, reflecting a substantial downward revision. For the first quarter of FY2026-27, inflation is projected at 3.9%, compared with the previous estimate of 4.5%. Malhotra noted that rising precious metal prices could add marginally to headline CPI but said risks to the forecast remain “evenly balanced.”Malhotra had warned at the previous policy meeting in October that, despite significantly moderated inflation in the first quarter, growth could slow in the latter half of the financial year due to global trade uncertainties. Those risks remain, even as the RBI adjusts its inflation outlook lower.Strong GDP supports rate cut decisionIndia’s economy expanded 8.2% in the July–September quarter, marking a six-quarter high and outpacing consensus expectations. Real GDP rose to ₹48.63 lakh crore compared with ₹44.94 lakh crore in the same period last year. Growth has now averaged 8.0% in the first half of FY2025-26.Against that backdrop, the RBI sharply raised its GDP forecast for the full financial year to 7.3%, up from 6.8%. For the current quarter, the central bank now expects growth of 6.7%, compared with its earlier projection of 6.4%.Malhotra said the “growth-inflation balance continues to provide policy space,” allowing the committee to proceed with easing despite broader economic caution.Industrial weakness and falling exports raise concernsEven with strong headline GDP numbers, several indicators point to an emerging slowdown. Industrial activity in October fell to a 14-month low, while HSBC’s manufacturing PMI slipped to a nine-month low in November. Export performance has also weakened. Shipments to the US — one of India’s largest markets — declined 8.5% year on year in October to $6.3 billion, marking the second consecutive monthly decline. Total outbound shipments fell 11.8% to $34.38 billion.The decline follows Washington’s move to impose a 50% tariff on Indian goods in August. In response, New Delhi reduced goods and services tax rates in September to support domestic demand ahead of the festive season.GST collections improved sharply in October to ₹1.95 trillion, up 4.6% from a year earlier, but momentum faded in November, when gross collections totalled ₹1.7 trillion — a modest 0.7% increase.The Indian rupee has weakened in recent days, slipping beyond the psychologically important 90-per-dollar level on Wednesday before recovering some ground. The currency volatility adds another layer of uncertainty as policymakers balance the need to support growth without jeopardising stability.The post India’s Central Bank lowers rates, citing weak pockets in economic data appeared first on Invezz

India’s Central Bank lowers rates, citing weak pockets in economic data

2025/12/05 13:51

India’s central bank lowered its benchmark policy rate by 25 basis points to 5.25% on Wednesday, matching expectations from economists.

The Reserve Bank of India’s monetary policy committee delivered the reduction unanimously, citing “weakness in some key economic indicators,” according to RBI governor Sanjay Malhotra.

The decision comes as headline inflation remains subdued and is expected to be revised lower in the first quarter of 2025.

Malhotra said headline inflation had eased significantly.

Inflation forecasts revised downward

The RBI projected Consumer Price Index inflation at 2% for FY2025-26, reflecting a substantial downward revision.

For the first quarter of FY2026-27, inflation is projected at 3.9%, compared with the previous estimate of 4.5%.

Malhotra noted that rising precious metal prices could add marginally to headline CPI but said risks to the forecast remain “evenly balanced.”

Malhotra had warned at the previous policy meeting in October that, despite significantly moderated inflation in the first quarter, growth could slow in the latter half of the financial year due to global trade uncertainties.

Those risks remain, even as the RBI adjusts its inflation outlook lower.

Strong GDP supports rate cut decision

India’s economy expanded 8.2% in the July–September quarter, marking a six-quarter high and outpacing consensus expectations.

Real GDP rose to ₹48.63 lakh crore compared with ₹44.94 lakh crore in the same period last year.

Growth has now averaged 8.0% in the first half of FY2025-26.

Against that backdrop, the RBI sharply raised its GDP forecast for the full financial year to 7.3%, up from 6.8%.

For the current quarter, the central bank now expects growth of 6.7%, compared with its earlier projection of 6.4%.

Malhotra said the “growth-inflation balance continues to provide policy space,” allowing the committee to proceed with easing despite broader economic caution.

Industrial weakness and falling exports raise concerns

Even with strong headline GDP numbers, several indicators point to an emerging slowdown.

Industrial activity in October fell to a 14-month low, while HSBC’s manufacturing PMI slipped to a nine-month low in November.

Export performance has also weakened. Shipments to the US — one of India’s largest markets — declined 8.5% year on year in October to $6.3 billion, marking the second consecutive monthly decline.

Total outbound shipments fell 11.8% to $34.38 billion.

The decline follows Washington’s move to impose a 50% tariff on Indian goods in August.

In response, New Delhi reduced goods and services tax rates in September to support domestic demand ahead of the festive season.

GST collections improved sharply in October to ₹1.95 trillion, up 4.6% from a year earlier, but momentum faded in November, when gross collections totalled ₹1.7 trillion — a modest 0.7% increase.

The Indian rupee has weakened in recent days, slipping beyond the psychologically important 90-per-dollar level on Wednesday before recovering some ground.

The currency volatility adds another layer of uncertainty as policymakers balance the need to support growth without jeopardising stability.

The post India’s Central Bank lowers rates, citing weak pockets in economic data appeared first on Invezz

Disclaimer: The articles reposted on this site are sourced from public platforms and are provided for informational purposes only. They do not necessarily reflect the views of MEXC. All rights remain with the original authors. If you believe any content infringes on third-party rights, please contact service@support.mexc.com for removal. MEXC makes no guarantees regarding the accuracy, completeness, or timeliness of the content and is not responsible for any actions taken based on the information provided. The content does not constitute financial, legal, or other professional advice, nor should it be considered a recommendation or endorsement by MEXC.

        Highlights:  US prosecutors requested a 12-year prison sentence for Do Kwon after the Terra collapse. Terraform’s $40 billion downfall caused huge losses and sparked a long downturn in crypto markets.  Do Kwon will face sentencing on December 11 and must give up $19 million in earnings.   US prosecutors have asked a judge to give Do Kwon, Terraform Labs co-founder, a 12-year prison sentence for his role in the remarkable $40 billion collapse of the Terra and Luna tokens. The request also seeks to finalize taking away Kwon’s criminal earnings.  The court filing came in New York’s Southern District on Thursday. This is about four months after Kwon admitted guilt on two charges: wire fraud and conspiracy to defraud. Prosecutors said Kwon caused more losses than Samuel Bankman-Fried, Alexander Mashinsky, and Karl Sebastian Greenwood combined.  U.S. prosecutors have asked a New York federal judge to sentence Terraform Labs co-founder Do Kwon to 12 years in prison, calling his role in the 2022 TerraUSD collapse a “colossal” fraud that triggered broader crypto-market failures, including the downfall of FTX. Sentencing is… — Wu Blockchain (@WuBlockchain) December 5, 2025  Terraform Collapse Shakes Crypto Market Authorities explained that Terraform’s collapse affected the entire crypto market. They said it helped trigger what is now called the ‘Crypto Winter.’ The filing stressed that Kwon’s conduct harmed many investors and the broader crypto world. On Thursday, prosecutors said Kwon must give up just over $19 million. They added that they will not ask for any additional restitution. They said: “The cost and time associated with calculating each investor-victim’s loss, determining whether the victim has already been compensated through the pending bankruptcy, and then paying out a percentage of the victim’s losses, will delay payment and diminish the amount of money ultimately paid to victims.” Authorities will sentence Do Kwon on December 11. They charged him in March 2023 with multiple crimes, including securities fraud, market manipulation, money laundering, and wire fraud. All connections are tied to his role at Terraform. After Terra fell in 2022, authorities lost track of Kwon until they arrested him in Montenegro on unrelated charges and sent him to the U.S. Do Kwon’s Legal Case and Sentencing In April last year, a jury ruled that both Terraform and Kwon committed civil fraud. They found the company and its co-founder misled investors about how the business operated and its finances. Jay Clayton, U.S. Attorney for the Southern District of New York, submitted the sentencing request in November.  TERRA STATEMENT: “We are very disappointed with the verdict, which we do not believe is supported by the evidence. We continue to maintain that the SEC does not have the legal authority to bring this case at all, and we are carefully weighing our options and next steps.” — Zack Guzmán  (@zGuz) April 5, 2024  The news of Kwon’s sentencing caused Terraform’s token, LUNA, to jump over 40% in one day, from $0.07 to $0.10. Still, this rise remains small compared to its all-time high of more than $19, which the ecosystem reached before collapsing in May 2022. In a November court filing, Do Kwon’s lawyers asked for a maximum five-year sentence. They argued for a shorter term partly because he could face up to 40 years in prison in South Korea, where prosecutors are also pursuing a case against him. The legal team added that even if Kwon serves time in the U.S., he would not be released freely. He would be moved from prison to an immigration detention center and then sent to Seoul to face pretrial detention for his South Korea charges.    eToro Platform    Best Crypto Exchange   Over 90 top cryptos to trade Regulated by top-tier entities User-friendly trading app 30+ million users    9.9   Visit eToro eToro is a multi-asset investment platform. The value of your investments may go up or down. Your capital is at risk. Don’t invest unless you’re prepared to lose all the money you invest. This is a high-risk investment, and you should not expect to be protected if something goes wrong.