RBI State of the Economy August 2025: Tariffs, Inflation, Rates
Why in the news
The RBI bulletin article warned that US trade uncertainty could weigh on growth though domestic conditions looked supportive.
Key facts
- Supportive factors: benign financial conditions, rate cut transmission, fiscal measures, rising household optimism.
- S&P Global raised the rating to BBB; Fitch reaffirmed BBB-, stable.
- Rating gains: lower borrowing costs, investor confidence, capital inflows.
- CPI: 1.6% in July versus 2.1% in June; below the 4% target in Q2 FY26, then edging up.
| Bank type | Rate fall, fresh loans | Rate fall, outstanding loans |
|---|---|---|
| Public sector banks | 77 bps | 41 bps |
| Private banks | 46 bps | 32 bps |
Exam angle
- Source: RBI bulletin, August 2025.
- S&P move: BBB- to BBB; Fitch: BBB- reaffirmed.