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China has announced its willingness to establish a ‘green channel’ to expedite export licences for rare earth shipments to the European Union (EU), in a move aimed at alleviating severe supply chain disruptions across European industries.The announcement follows mounting criticism from European businesses and officials who say China’s licensing regime, imposed in April, has led to costly production delays in critical sectors such as electric vehicles, aerospace, and semiconductors.According to a statement from China’s Ministry of Commerce released on June 7, qualified EU firms could benefit from faster approvals under the proposed mechanism. Commerce Minister Wang Wentao conveyed this willingness during a meeting with EU Trade Commissioner Maros Sefcovic in Paris last week."China attaches great importance to Europe's concerns and is willing to establish a green channel for eligible applications, fast-track the examination and approval, and instruct the working level to maintain timely communication," the ministry stated in the release.The Chinese government has maintained that its rare earth export controls are in line with international practices, particularly in response to Western export bans on advanced technology products to China.However, business groups such as the European Union Chamber of Commerce have warned that the current system lacks transparency and is hampering operations.<h2>Brandy, EVs, and bilateral bargaining</h2>The rare earth issue is just one of several flashpoints in the growing economic tensions between China and the EU. Another contentious topic is the ongoing trade investigation into European brandy imports, particularly French cognac, on which China had imposed tariffs of up to 39 per cent, interpreted widely as retaliation for the EU’s tariffs on Chinese-made electric vehicles (EVs).France’s President Emmanuel Macron publicly criticised the move, calling it “pure retaliation”. China’s Ministry of Commerce announced that it would deliver a final decision on the brandy duties by July 5. It added that French producers and associations had submitted applications on price commitments and that the two sides had reached a consensus on core terms, pending final review.Meanwhile, consultations over a price commitment mechanism for Chinese EV exports to Europe have reached an “advanced stage”, although both sides have acknowledged that further effort is needed.The European Commission has suggested setting minimum prices for Chinese-made EVs instead of imposing outright tariffs, a proposal Beijing is evaluating along with possible new technical cooperation in the electric mobility sector.<h2>Pressure from the US and global backlash</h2>The EU is not alone in its concerns. The United States has also raised alarms about the implications of China’s rare earth controls. Following a phone call between US President Donald Trump and Chinese President Xi Jinping, both countries agreed to resume trade talks in London, though no clear commitments were made regarding the rare earths issue.While China has issued more export licences in recent days, American and European industry leaders say the pace remains too slow and supply chains remain vulnerable.Chinese companies are reportedly hesitant to apply for large-volume export licences, especially for shipments that could end up with US military contractors, amid growing national security concerns.Beijing’s strategic use of rare earths as leverage has triggered broader concerns among Western policymakers.<h2>Cooperation or confrontation?</h2>The next few weeks may prove pivotal. China is set to host a summit with the EU next month, marking 50 years of diplomatic relations with Brussels. While the rare earth green channel signals a potential thaw in trade relations, the broader dynamics of technology restrictions, reciprocal tariffs, and geopolitical distrust remain unresolved.As discussions continue, both sides appear to be balancing the need for cooperation against the realities of a rapidly fracturing global trade environment. Whether the latest moves by Beijing will be enough to rebuild trust and prevent further escalation remains to be seen.

The announcement follows mounting criticism from European businesses and officials who say China’s licensing regime, imposed in April, has led to costly production delays in critical sectors such as electric vehicles, aerospace, and semiconductors.

China has announced its willingness to establish a ‘green channel’ to expedite export licences for rare earth shipments to the European Union (EU), in a move aimed at alleviating severe supply chain disruptions across European industries. The announcement follows mounting criticism from European businesses and officials who say China’s licensing regime, imposed in April, has led to costly production delays in critical sectors such as electric vehicles, aerospace, and semiconductors. According to a statement from China’s Ministry of Commerce released on June 7, qualified EU firms could benefit from faster approvals under the proposed mechanism. Commerce Minister Wang Wentao conveyed this willingness during a meeting with EU Trade Commissioner Maros Sefcovic in Paris last week. "China attaches great importance to Europe's concerns and is willing to establish a green channel for eligible applications, fast-track the examination and approval, and instruct the working level to maintain timely communication," the ministry stated in the release. The Chinese government has maintained that its rare earth export controls are in line with international practices, particularly in response to Western export bans on advanced technology products to China. However, business groups such as the European Union Chamber of Commerce have warned that the current system lacks transparency and is hampering operations. Brandy, EVs, and bilateral bargaining The rare earth issue is just one of several flashpoints in the growing economic tensions between China and the EU. Another contentious topic is the ongoing trade investigation into European brandy imports, particularly French cognac, on which China had imposed tariffs of up to 39 per cent, interpreted widely as retaliation for the EU’s tariffs on Chinese-made electric vehicles (EVs). France’s President Emmanuel Macron publicly criticised the move, calling it “pure retaliation”. China’s Ministry of Commerce announced that it would deliver a final decision on the brandy duties by July 5. It added that French producers and associations had submitted applications on price commitments and that the two sides had reached a consensus on core terms, pending final review. Meanwhile, consultations over a price commitment mechanism for Chinese EV exports to Europe have reached an “advanced stage”, although both sides have acknowledged that further effort is needed. The European Commission has suggested setting minimum prices for Chinese-made EVs instead of imposing outright tariffs, a proposal Beijing is evaluating along with possible new technical cooperation in the electric mobility sector. Pressure from the US and global backlash The EU is not alone in its concerns. The United States has also raised alarms about the implications of China’s rare earth controls. Following a phone call between US President Donald Trump and Chinese President Xi Jinping, both countries agreed to resume trade talks in London, though no clear commitments were made regarding the rare earths issue. While China has issued more export licences in recent days, American and European industry leaders say the pace remains too slow and supply chains remain vulnerable. Chinese companies are reportedly hesitant to apply for large-volume export licences, especially for shipments that could end up with US military contractors, amid growing national security concerns. Beijing’s strategic use of rare earths as leverage has triggered broader concerns among Western policymakers. Cooperation or confrontation? The next few weeks may prove pivotal. China is set to host a summit with the EU next month, marking 50 years of diplomatic relations with Brussels. While the rare earth green channel signals a potential thaw in trade relations, the broader dynamics of technology restrictions, reciprocal tariffs, and geopolitical distrust remain unresolved. As discussions continue, both sides appear to be balancing the need for cooperation against the realities of a rapidly fracturing global trade environment. Whether the latest moves by Beijing will be enough to rebuild trust and prevent further escalation remains to be seen.

The announcement follows mounting criticism from European businesses and officials who say China’s licensing regime, imposed in April, has led to costly production delays in critical sectors such as electric vehicles, aerospace, and semiconductors.

China offers ‘green channel’ for rare earth exports to EU amid mounting tensions

In 2017, three childhood friends stood under a flimsy canopy in a Los Angeles parking lot, armed with a fryer, borrowed tables, and a dream. Their capital? Just $900. Their product? Nashville-style hot chicken served with fries, slaw, and a fiery spice level called “Reaper” that requires a waiver to eat.Eight years later, Dave’s Hot Chicken has gone from pop-up to phenomenon. This week, the California-based fast-casual chain was sold in a deal reportedly worth close to $1 billion to private equity firm Roark Capital, the latest sign of how red-hot the chicken market has become.“It’s insane what we did,” said CEO Bill Phelps in an interview with CNBC. “The vision of these guys was just great. Arman Oganesyan was the founder. A high school dropout, but a marketing genius, and he created all of this in his head.”<h2>A humble start</h2>It all began with Arman Oganesyan, then a 24-year-old aspiring comedian making $50 a night with no restaurant experience. He pitched the idea of selling hot chicken to two childhood friends: Dave Kopushyan, a classically trained chef who had worked at Michelin-starred establishments like The French Laundry, and Tommy Rubenyan. There was just one hiccup: Kopushyan didn’t eat meat.“Chicken? First of all, I don’t even like chicken,” Kopushyan reportedly told him.But Oganesyan convinced him. Together, the trio scraped together their savings and started experimenting in kitchens, inspired by cult favourites like Howlin’ Ray’s and Gus’s World Famous Fried Chicken. Their research was intense, stuffing themselves with hot chicken across LA, studying recipes on YouTube, and even discovering the power of pickle juice by accident.Their first night in business brought in just $40, mostly from friends. But within a week, a rave review from Eater Los Angeles sparked long lines outside their stand. Within months, they were selling out daily and paying themselves $10,000 a month, more money than any of them had ever seen.<h2>The Hollywood twist</h2>Their big break came when a man named John Davis walked into their first brick-and-mortar store and left a Post-it note asking for a call. Davis, a Hollywood producer and early investor in Wetzel’s Pretzels and Blaze Pizza, was ready to bet big on fried chicken.In 2019, Davis led an investor group including actor Samuel L. Jackson, former NFL player and TV host Michael Strahan, and Boston Red Sox owner Tom Werner to buy a roughly 50 per cent stake in Dave’s Hot Chicken. Phelps, a fast-food veteran who co-founded Wetzel’s Pretzels, became CEO. His experience, particularly in franchising, proved invaluable.Unlike Wetzel's, where franchises were handed to just about anyone, Dave’s focused on multi-unit operators who committed to opening at least five stores. The result was explosive: from a handful of LA stores, the brand has grown to 315 locations across the US, Canada, the UK, and the Middle East—with plans to hit 1,000 in the next five years.<h2>The billion-dollar chicken boom</h2>Dave’s success isn’t just about clever branding or spicy wings. It’s part of a broader trend: Americans are eating more chicken than ever. According to Technomic, sales at US chicken chains jumped 9 per cent last year—triple the growth rate of burger joints. Fast-casual chicken spots like Raising Cane’s, Wingstop, and Dave’s saw sales surge 24 per cent.In 2024 alone, Dave’s raked in over $600 million in systemwide sales. This year, it expects to double that to $1.2 billion. “We’re extremely profitable at the franchise level and corporate level,” said company president and COO Jim Bitticks.Private equity firms have taken notice. Roark Capital—already the owner of Dunkin’, Subway, Arby’s, and Buffalo Wild Wings—has now added Dave’s to its growing restaurant empire. The firm reportedly had its eye on the brand since 2021 and attended early store openings, leading company insiders to joke that they had a “private equity stalker”.Though Roark now holds a majority stake, Dave’s original team—including Oganesyan, Kopushyan, the Rubenyan brothers, and Phelps—will retain minority shares and continue leading the brand.<h2>Staying true to the flame</h2>Despite its rapid growth and billion-dollar valuation, Dave’s hasn’t lost touch with its humble roots. Stores still display graffiti-covered walls and a simple four-combo menu. The “Reaper” spice level remains—along with the waiver customers must sign acknowledging risks of “bodily injury” and “emotional distress”.Chef Dave Kopushyan continues to serve as chief culinary officer, while Oganesyan, now 32, steers the brand’s image as chief brand officer. Their success may seem improbable, but for them, the formula was simple: obsession with quality, authenticity, and timing.“When we started”, Oganesyan once said, “our goal was to have a single store in a few years.”Instead, they built one of the fastest-growing restaurant chains in America. Not bad for a guy who didn’t eat chicken, another who dropped out of high school, and a third who couldn’t even afford a food truck.

This week, the California-based Dave’s Hot Chicken chain was sold in a deal reportedly worth close to $1 billion to private equity firm Roark Capital, the latest sign of how red-hot the chicken market has become.

In 2017, three childhood friends stood under a flimsy canopy in a Los Angeles parking lot, armed with a fryer, borrowed tables, and a dream. Their capital? Just $900. Their product? Nashville-style hot chicken served with fries, slaw, and a fiery spice level called “Reaper” that requires a waiver to eat. Eight years later, Dave’s Hot Chicken has gone from pop-up to phenomenon. This week, the California-based fast-casual chain was sold in a deal reportedly worth close to $1 billion to private equity firm Roark Capital, the latest sign of how red-hot the chicken market has become. “It’s insane what we did,” said CEO Bill Phelps in an interview with CNBC. “The vision of these guys was just great. Arman Oganesyan was the founder. A high school dropout, but a marketing genius, and he created all of this in his head.” A humble start It all began with Arman Oganesyan, then a 24-year-old aspiring comedian making $50 a night with no restaurant experience. He pitched the idea of selling hot chicken to two childhood friends: Dave Kopushyan, a classically trained chef who had worked at Michelin-starred establishments like The French Laundry, and Tommy Rubenyan. There was just one hiccup: Kopushyan didn’t eat meat. “Chicken? First of all, I don’t even like chicken,” Kopushyan reportedly told him. But Oganesyan convinced him. Together, the trio scraped together their savings and started experimenting in kitchens, inspired by cult favourites like Howlin’ Ray’s and Gus’s World Famous Fried Chicken. Their research was intense, stuffing themselves with hot chicken across LA, studying recipes on YouTube, and even discovering the power of pickle juice by accident. Their first night in business brought in just $40, mostly from friends. But within a week, a rave review from Eater Los Angeles sparked long lines outside their stand. Within months, they were selling out daily and paying themselves $10,000 a month, more money than any of them had ever seen. The Hollywood twist Their big break came when a man named John Davis walked into their first brick-and-mortar store and left a Post-it note asking for a call. Davis, a Hollywood producer and early investor in Wetzel’s Pretzels and Blaze Pizza, was ready to bet big on fried chicken. In 2019, Davis led an investor group including actor Samuel L. Jackson, former NFL player and TV host Michael Strahan, and Boston Red Sox owner Tom Werner to buy a roughly 50 per cent stake in Dave’s Hot Chicken. Phelps, a fast-food veteran who co-founded Wetzel’s Pretzels, became CEO. His experience, particularly in franchising, proved invaluable. Unlike Wetzel's, where franchises were handed to just about anyone, Dave’s focused on multi-unit operators who committed to opening at least five stores. The result was explosive: from a handful of LA stores, the brand has grown to 315 locations across the US, Canada, the UK, and the Middle East—with plans to hit 1,000 in the next five years. The billion-dollar chicken boom Dave’s success isn’t just about clever branding or spicy wings. It’s part of a broader trend: Americans are eating more chicken than ever. According to Technomic, sales at US chicken chains jumped 9 per cent last year—triple the growth rate of burger joints. Fast-casual chicken spots like Raising Cane’s, Wingstop, and Dave’s saw sales surge 24 per cent. In 2024 alone, Dave’s raked in over $600 million in systemwide sales. This year, it expects to double that to $1.2 billion. “We’re extremely profitable at the franchise level and corporate level,” said company president and COO Jim Bitticks. Private equity firms have taken notice. Roark Capital—already the owner of Dunkin’, Subway, Arby’s, and Buffalo Wild Wings—has now added Dave’s to its growing restaurant empire. The firm reportedly had its eye on the brand since 2021 and attended early store openings, leading company insiders to joke that they had a “private equity stalker”. Though Roark now holds a majority stake, Dave’s original team—including Oganesyan, Kopushyan, the Rubenyan brothers, and Phelps—will retain minority shares and continue leading the brand. Staying true to the flame Despite its rapid growth and billion-dollar valuation, Dave’s hasn’t lost touch with its humble roots. Stores still display graffiti-covered walls and a simple four-combo menu. The “Reaper” spice level remains—along with the waiver customers must sign acknowledging risks of “bodily injury” and “emotional distress”. Chef Dave Kopushyan continues to serve as chief culinary officer, while Oganesyan, now 32, steers the brand’s image as chief brand officer. Their success may seem improbable, but for them, the formula was simple: obsession with quality, authenticity, and timing. “When we started”, Oganesyan once said, “our goal was to have a single store in a few years.” Instead, they built one of the fastest-growing restaurant chains in America. Not bad for a guy who didn’t eat chicken, another who dropped out of high school, and a third who couldn’t even afford a food truck.

This week, the California-based Dave’s Hot Chicken chain was sold in a deal reportedly worth close to $1 billion to private equity firm Roark Capital, the latest sign of how red-hot the chicken market has become.

From $900 to $1 billion: How Dave’s Hot Chicken became America’s spiciest success story

There's a new billionaire in town—and she’s not headlining stadium tours or breaking Spotify records. Instead, she’s zipping around on an electric skateboard, hosting wild parties in Miami, and cashing in big on artificial intelligence (AI).Meet Lucy Guo, the 30-year-old tech entrepreneur who just snagged the title of the world’s youngest self-made female billionaire, beating out Taylor Swift on Forbes’ latest list.Worth an estimated $1.3 billion, Guo’s fortune largely stems from her early stake in Scale AI, a data labelling company she co-founded back in 2016. The company, currently valued at around $25 billion, plays a crucial role in training AI models used by the likes of OpenAI and Alphabet.But despite her billionaire status, Guo insists it doesn’t quite feel real yet. “Most of my money is still on paper,” she told The Telegraph. “Maybe reality hasn’t hit.”<h2>The American dream</h2>Born to Chinese immigrant parents and raised in the San Francisco Bay Area, Guo's story has all the classic ingredients of a modern-day tech fairy tale. She picked up coding in middle school, aced her way into Carnegie Mellon, and then dropped out—a move that horrified her parents at the time.“They stopped talking to me for a while,” Guo admitted in a conversation with The Telegraph. “I get it. The immigrant mentality was like, ‘We sacrificed everything to give you a better life.’” But reconciliation came eventually, especially once things started taking off.With support from the Thiel Fellowship—a $100,000 scholarship created by PayPal co-founder Peter Thiel for students who skip college to build startups—Guo dove into the tech world headfirst. She worked brief stints at Quora and Snapchat, and it was during this time she met Alexandr Wang, her future Scale AI co-founder.Together, they launched Scale AI, just as the AI wave was beginning to swell. Guo ran operations and production design, while Wang took the CEO role. However, a difference of opinion eventually led to Guo's exit just two years later, though she smartly held on to her 5 per cent equity. That stake? Now worth about $1.2 billion.<h2>Building, partying, and investing</h2>Guo didn’t stop there. After stepping away from Scale AI, she set up her own VC firm, Backend Capital, which has invested in over 100 startups. She also co-founded Passes, a content creation platform that blends the functionality of Patreon with a social media twist, like paid DMs, livestreams, and subscriptions.Passes markets itself as a more wholesome alternative to OnlyFans, though it has been surrounded by controversy. A lawsuit filed earlier this year alleged the platform hosted explicit content featuring a minor.Guo and Passes have denied the claims, calling the suit a baseless, orchestrated attempt to smear the company and its founder.A spokesperson for Passes said the platform now bans underage creators and wiped related content even before the lawsuit went public. Guo’s legal team has filed to dismiss the suit, and the case remains ongoing.Despite the heavy accusations and intense scrutiny, Guo isn’t exactly living the quiet billionaire lifestyle. Guo enjoys the finer, and sometimes flashier, things in life.Think two Barry’s Bootcamp sessions a day, techno raves, and a party scene that once involved renting animals like lemurs and snakes from the Zoological Wildlife Foundation and led to the building’s homeowners’ association sending a warning letter.Her apartment in Miami’s ultra-luxe One Thousand Museum tower became notorious enough to attract tabloid headlines. She now splits her time between LA and Miami.While her personality might polarise, Guo is serious when it comes to supporting women in tech. She’s vocal about the double standards female founders face. “Take two people, exactly the same, one male and the other female, coming out of MIT. Investors still think the male will do better. It sucks,” she told The Telegraph.Still, she doesn’t sugarcoat the startup grind. "It's pretty unrealistic to build a venture-funded startup with work-life balance,” she said, and she wants aspiring founders to know that upfront.<h2>Passing the baton?</h2>Even with her shiny new title, Guo isn’t too attached to it. In fact, she seems thrilled by the idea of being dethroned soon. “I have almost no doubt this title can be taken in three to six months,” she told Extra.ie. “Women are crushing it. Entrepreneurship is growing, and that’s exciting.”She even had kind words for the woman she replaced. “Taylor Swift has always struck me as someone who’s very pro-woman and wants other people to win. I’m a huge fan. I think she’s an icon.”&nbsp;(With inputs from agencies)

With a net worth estimated at $1.3 billion, Lucy Guo’s fortune largely stems from her early stake in Scale AI, a data labelling company she co-founded back in 2016.

There's a new billionaire in town—and she’s not headlining stadium tours or breaking Spotify records. Instead, she’s zipping around on an electric skateboard, hosting wild parties in Miami, and cashing in big on artificial intelligence (AI). Meet Lucy Guo, the 30-year-old tech entrepreneur who just snagged the title of the world’s youngest self-made female billionaire, beating out Taylor Swift on Forbes’ latest list. Worth an estimated $1.3 billion, Guo’s fortune largely stems from her early stake in Scale AI, a data labelling company she co-founded back in 2016. The company, currently valued at around $25 billion, plays a crucial role in training AI models used by the likes of OpenAI and Alphabet. But despite her billionaire status, Guo insists it doesn’t quite feel real yet. “Most of my money is still on paper,” she told The Telegraph. “Maybe reality hasn’t hit.” The American dream Born to Chinese immigrant parents and raised in the San Francisco Bay Area, Guo's story has all the classic ingredients of a modern-day tech fairy tale. She picked up coding in middle school, aced her way into Carnegie Mellon, and then dropped out—a move that horrified her parents at the time. “They stopped talking to me for a while,” Guo admitted in a conversation with The Telegraph. “I get it. The immigrant mentality was like, ‘We sacrificed everything to give you a better life.’” But reconciliation came eventually, especially once things started taking off. With support from the Thiel Fellowship—a $100,000 scholarship created by PayPal co-founder Peter Thiel for students who skip college to build startups—Guo dove into the tech world headfirst. She worked brief stints at Quora and Snapchat, and it was during this time she met Alexandr Wang, her future Scale AI co-founder. Together, they launched Scale AI, just as the AI wave was beginning to swell. Guo ran operations and production design, while Wang took the CEO role. However, a difference of opinion eventually led to Guo's exit just two years later, though she smartly held on to her 5 per cent equity. That stake? Now worth about $1.2 billion. Building, partying, and investing Guo didn’t stop there. After stepping away from Scale AI, she set up her own VC firm, Backend Capital, which has invested in over 100 startups. She also co-founded Passes, a content creation platform that blends the functionality of Patreon with a social media twist, like paid DMs, livestreams, and subscriptions. Passes markets itself as a more wholesome alternative to OnlyFans, though it has been surrounded by controversy. A lawsuit filed earlier this year alleged the platform hosted explicit content featuring a minor. Guo and Passes have denied the claims, calling the suit a baseless, orchestrated attempt to smear the company and its founder. A spokesperson for Passes said the platform now bans underage creators and wiped related content even before the lawsuit went public. Guo’s legal team has filed to dismiss the suit, and the case remains ongoing. Despite the heavy accusations and intense scrutiny, Guo isn’t exactly living the quiet billionaire lifestyle. Guo enjoys the finer, and sometimes flashier, things in life. Think two Barry’s Bootcamp sessions a day, techno raves, and a party scene that once involved renting animals like lemurs and snakes from the Zoological Wildlife Foundation and led to the building’s homeowners’ association sending a warning letter. Her apartment in Miami’s ultra-luxe One Thousand Museum tower became notorious enough to attract tabloid headlines. She now splits her time between LA and Miami. While her personality might polarise, Guo is serious when it comes to supporting women in tech. She’s vocal about the double standards female founders face. “Take two people, exactly the same, one male and the other female, coming out of MIT. Investors still think the male will do better. It sucks,” she told The Telegraph. Still, she doesn’t sugarcoat the startup grind. "It's pretty unrealistic to build a venture-funded startup with work-life balance,” she said, and she wants aspiring founders to know that upfront. Passing the baton? Even with her shiny new title, Guo isn’t too attached to it. In fact, she seems thrilled by the idea of being dethroned soon. “I have almost no doubt this title can be taken in three to six months,” she told Extra.ie. “Women are crushing it. Entrepreneurship is growing, and that’s exciting.” She even had kind words for the woman she replaced. “Taylor Swift has always struck me as someone who’s very pro-woman and wants other people to win. I’m a huge fan. I think she’s an icon.” (With inputs from agencies)

With a net worth estimated at $1.3 billion, Lucy Guo’s fortune largely stems from her early stake in Scale AI, a data labelling company she co-founded back in 2016.

Who is the college dropout who dethroned Taylor Swift as the youngest self-made female billionaire?

Friday brought some calm in the aftermath of the breakup between Elon Musk and President Donald Trump's bromance, with Wall Street stocks ending the week in the green.The solid jobs report also helped offset any worries about the trade war and its impact on the real economy.The market surge comes even as bets show a further delay in Federal Reserve rate cuts to later in the year.US stocks closed at their highest mark since February, boosting the S&amp;P 500 by about one per cent to 6,000 points.After Tesla stocks crashed over 14 per cent, wiping out more than $150 billion in market value, the EV maker recovered some ground as dip-buyers engaged significantly and flocked to the stock.Musk's very public meltdown with Trump on Thursday turned into a more calm and boring Friday, with only a couple of attacking posts on social platforms by the once best buddies.The US jobs report showed more resilience in the US economy, with the widely expected slowdown still not reflected in the labour market at least.While there will be a significant impact from the uncertainty surrounding Trump's tariffs, the timing and the depth of the hit are hot topics of debate.<h2>Fed rate cut expectations shift</h2>The Fed on the sidelines has irked the US president, with Trump repeatedly calling for a rate cut and the Fed Chair Jerome Powell's head.However, within the central bank, about 40 per cent of policymakers now expect to lower rates just once by 25 basis points at best.That is below the two rate actions, interest rate swap market is betting on, with a 70 per cent probability of one cut coming in September.While trades show September still is expected to be a live event, bets were for a 90 per cent probability before the release of non-farm payrolls data.But the other view floating among investors is that any delay in a rate cut will slip the Fed behind the curve on growth, which could force the US central bank to deliver another jumbo rate cut as it did last year.Investors will eye US consumer price inflation for cues to understand if the Fed's focus on price pressures is the best approach.Separately, a Bloomberg survey showed Wall Street stocks will put the worst of this year's trade-war turmoil behind them and rally to fresh highs in 2025.While markets have rallied in recent times, the risk of a severe pullback remains real.

The solid jobs report also helped offset any worries about the trade war and its impact on the real economy.

Friday brought some calm in the aftermath of the breakup between Elon Musk and President Donald Trump's bromance, with Wall Street stocks ending the week in the green. The solid jobs report also helped offset any worries about the trade war and its impact on the real economy. The market surge comes even as bets show a further delay in Federal Reserve rate cuts to later in the year. US stocks closed at their highest mark since February, boosting the S&P 500 by about one per cent to 6,000 points. After Tesla stocks crashed over 14 per cent, wiping out more than $150 billion in market value, the EV maker recovered some ground as dip-buyers engaged significantly and flocked to the stock. Musk's very public meltdown with Trump on Thursday turned into a more calm and boring Friday, with only a couple of attacking posts on social platforms by the once best buddies. The US jobs report showed more resilience in the US economy, with the widely expected slowdown still not reflected in the labour market at least. While there will be a significant impact from the uncertainty surrounding Trump's tariffs, the timing and the depth of the hit are hot topics of debate. Fed rate cut expectations shift The Fed on the sidelines has irked the US president, with Trump repeatedly calling for a rate cut and the Fed Chair Jerome Powell's head. However, within the central bank, about 40 per cent of policymakers now expect to lower rates just once by 25 basis points at best. That is below the two rate actions, interest rate swap market is betting on, with a 70 per cent probability of one cut coming in September. While trades show September still is expected to be a live event, bets were for a 90 per cent probability before the release of non-farm payrolls data. But the other view floating among investors is that any delay in a rate cut will slip the Fed behind the curve on growth, which could force the US central bank to deliver another jumbo rate cut as it did last year. Investors will eye US consumer price inflation for cues to understand if the Fed's focus on price pressures is the best approach. Separately, a Bloomberg survey showed Wall Street stocks will put the worst of this year's trade-war turmoil behind them and rally to fresh highs in 2025. While markets have rallied in recent times, the risk of a severe pullback remains real.

The solid jobs report also helped offset any worries about the trade war and its impact on the real economy.

Markets rally despite Musk-Trump rift, but what’s next?

In a significant achievement underscoring India’s developmental strides, the World Bank has reported a dramatic fall in the country’s extreme poverty rate—from 27.1 per cent in 2011-12 to just 5.3 per cent in 2022-23.This translates to about 269 million Indians escaping extreme poverty over the past 11 years, according to newly released data that reflects updated global standards.The assessment is based on the World Bank’s revised international poverty line of $3.00 per day, adjusted to 2021 purchasing power parity (PPP), up from the earlier threshold of $2.15 (2017 PPP).The new benchmark aims to better represent present-day global price levels and cost-of-living conditions, offering a more realistic picture of deprivation.Under this revised standard, the number of Indians living in extreme poverty dropped to 75.24 million in 2022-23, compared to 344.47 million in 2011-12.The fall was particularly steep in rural India, where the poverty rate plummeted from 18.4 per cent to 2.8 per cent. In urban areas, extreme poverty declined from 10.7 per cent to just 1.1 per cent.<h2>Five states drive the bulk of poverty reduction</h2>Five of India’s most populous states—Uttar Pradesh, Maharashtra, Bihar, West Bengal, and Madhya Pradesh—were pivotal in driving this transformation. In 2011-12, they accounted for 65 per cent of the country’s extremely poor population.By 2022-23, they contributed to two-thirds of the overall reduction in extreme poverty. However, these states still house over half of the country’s remaining extreme poor.The World Bank also updated its lower-middle-income poverty line from $3.65 to $4.20 per day. By this metric, poverty in India fell from 57.7 per cent in 2011-12 to 23.9 per cent in 2022-23, indicating a significant decline in income vulnerability.Complementing these trends, India’s Multidimensional Poverty Index (MPI)—which includes indicators such as education, health, and living standards—also registered a steep decline. The MPI dropped from 53.8 per cent in 2005-06 to 16.4 per cent in 2019-21 and further down to 15.5 per cent in 2022-23.<h2>Economic growth, welfare schemes behind gains</h2>Experts attribute the progress to sustained economic growth, job creation in urban and services sectors, and the effective rollout of government schemes.Flagship initiatives like PM Awas Yojana, Jan Dhan Yojana, Ayushman Bharat, and Ujjwala Yojana have improved access to housing, healthcare, banking, and clean cooking fuel. Meanwhile, direct benefit transfers (DBT), digital infrastructure, and rural development efforts have enhanced transparency and last-mile delivery.Despite these gains, economists caution that vulnerability remains high for many. Household consumption expenditure survey (HCES) data for 2023-24 reveals that 90 per cent of rural Indians still spend less than ₹5,763 per month, with the bottom 5 per cent surviving on just ₹1,677.As India continues to evolve its poverty assessment tools, including plans by NITI Aayog to develop a new income-based poverty measure, the focus will likely shift from lifting people out of poverty to preventing those just above the line from falling back in.

The fall was particularly steep in rural India, where the poverty rate plummeted from 18.4 per cent to 2.8 per cent. In urban areas, extreme poverty declined from 10.7 per cent to just 1.1 per cent.

In a significant achievement underscoring India’s developmental strides, the World Bank has reported a dramatic fall in the country’s extreme poverty rate—from 27.1 per cent in 2011-12 to just 5.3 per cent in 2022-23. This translates to about 269 million Indians escaping extreme poverty over the past 11 years, according to newly released data that reflects updated global standards. The assessment is based on the World Bank’s revised international poverty line of $3.00 per day, adjusted to 2021 purchasing power parity (PPP), up from the earlier threshold of $2.15 (2017 PPP). The new benchmark aims to better represent present-day global price levels and cost-of-living conditions, offering a more realistic picture of deprivation. Under this revised standard, the number of Indians living in extreme poverty dropped to 75.24 million in 2022-23, compared to 344.47 million in 2011-12. The fall was particularly steep in rural India, where the poverty rate plummeted from 18.4 per cent to 2.8 per cent. In urban areas, extreme poverty declined from 10.7 per cent to just 1.1 per cent. Five states drive the bulk of poverty reduction Five of India’s most populous states—Uttar Pradesh, Maharashtra, Bihar, West Bengal, and Madhya Pradesh—were pivotal in driving this transformation. In 2011-12, they accounted for 65 per cent of the country’s extremely poor population. By 2022-23, they contributed to two-thirds of the overall reduction in extreme poverty. However, these states still house over half of the country’s remaining extreme poor. The World Bank also updated its lower-middle-income poverty line from $3.65 to $4.20 per day. By this metric, poverty in India fell from 57.7 per cent in 2011-12 to 23.9 per cent in 2022-23, indicating a significant decline in income vulnerability. Complementing these trends, India’s Multidimensional Poverty Index (MPI)—which includes indicators such as education, health, and living standards—also registered a steep decline. The MPI dropped from 53.8 per cent in 2005-06 to 16.4 per cent in 2019-21 and further down to 15.5 per cent in 2022-23. Economic growth, welfare schemes behind gains Experts attribute the progress to sustained economic growth, job creation in urban and services sectors, and the effective rollout of government schemes. Flagship initiatives like PM Awas Yojana, Jan Dhan Yojana, Ayushman Bharat, and Ujjwala Yojana have improved access to housing, healthcare, banking, and clean cooking fuel. Meanwhile, direct benefit transfers (DBT), digital infrastructure, and rural development efforts have enhanced transparency and last-mile delivery. Despite these gains, economists caution that vulnerability remains high for many. Household consumption expenditure survey (HCES) data for 2023-24 reveals that 90 per cent of rural Indians still spend less than ₹5,763 per month, with the bottom 5 per cent surviving on just ₹1,677. As India continues to evolve its poverty assessment tools, including plans by NITI Aayog to develop a new income-based poverty measure, the focus will likely shift from lifting people out of poverty to preventing those just above the line from falling back in.

The fall was particularly steep in rural India, where the poverty rate plummeted from 18.4 per cent to 2.8 per cent. In urban areas, extreme poverty declined from 10.7 per cent to just 1.1 per cent.

India lifts 269 million out of extreme poverty in 11 years: World Bank

What began as one of the most powerful political-tech partnerships in modern American history has now devolved into an epic feud. The once-close relationship between President Donald Trump and billionaire Elon Musk has collapsed in spectacular fashion—publicly, bitterly, and with potentially far-reaching political and economic consequences.Just a few months ago, Musk stood beside Trump on the steps of the US Capitol, lauded during the president’s second inaugural address as a “super genius” and “a star”. Today, their mutual admiration has turned into open hostility. Musk has called Trump’s spending bill a “disgusting abomination”, while Trump has threatened to revoke billions of dollars in government contracts with Musk’s companies.It’s a rupture that feels both inevitable and tragic, a classic tale of egos too large to share the same spotlight.<h2>A high-wattage beginning</h2>The roots of the Trump-Musk alliance trace back to the summer of 2024, when Musk publicly endorsed Trump following an assassination attempt during a campaign rally. From there, the alliance deepened quickly.Musk appeared at Trump rallies, wore MAGA (Make America Great Again) hats, and declared the former president the only candidate who could “preserve democracy in America”.The tech mogul’s social media platform, X, became a digital megaphone for Trump’s re-election campaign. Musk’s political enthusiasm wasn’t limited to cheerleading; he reportedly poured more than $100 million into efforts to return Trump to the White House, emerging as a potent new kingmaker in Republican politics.In return, Trump elevated Musk in ways no modern president has done for a private citizen. Following his election victory in November 2024, Trump appointed Musk to lead the newly created Department of Government Efficiency (DOGE), tasking him with cutting federal waste and reshaping the bureaucratic state.Musk’s role was far from ceremonial. He took part in Cabinet meetings and oversaw budget cuts. Trump defended Musk during global backlash against Tesla, calling him a “patriot” and vowing to buy a Tesla himself.<h2>The beginning of the end</h2>Despite the theatrics and mutual praise, tensions began to bubble beneath the surface early in 2025. As DOGE aggressively pushed cost-cutting and return-to-office mandates, backlash from federal workers and agencies grew. Musk’s efforts to overhaul agencies like the US. The Institute of Peace sparked internal resistance and mounting political headaches for the administration.By March, Trump made it clear to his Cabinet that Musk was not in charge of federal departments—a subtle but significant reassertion of executive authority. Musk, for his part, publicly claimed the meetings were “productive”, but behind the scenes, his influence was waning.April brought more cracks. Tesla reported disappointing earnings, with shares down more than 40 per cent for the year amid growing investor concern that Musk was overextended. He pledged to reduce his involvement in DOGE, and by May, he had exited the administration altogether, citing frustration with government inefficiency and the administration’s direction.Even then, both men maintained a facade of cordiality. Trump held a farewell event for Musk, calling him “not really gone”, and Musk continued to visit the White House sporadically. But the goodwill would not last.<h2>A collision of titans</h2>The final break came in June, triggered by Musk’s vocal opposition to Trump’s sweeping tax and spending bill. Musk called the legislation “a disgusting abomination” and accused lawmakers of stuffing it with wasteful “pork”. He argued it undermined the very efficient efforts he had championed at DOGE.Trump initially tried to downplay the criticism but quickly turned combative. He accused Musk of being upset over the rollback of electric vehicle tax credits and dismissed his opposition as “personal”.The response from Musk was swift and scathing. He denied being consulted on the bill, lambasted the rushed legislative process, and suggested that Trump’s leadership was flawed. In a particularly pointed jab, he claimed Trump would have lost the 2024 election without his help.What followed was an extraordinary online brawl. Trump threatened to cancel federal contracts with Musk’s companies—Tesla, SpaceX, and Neuralink among them. Musk responded by threatening to phase out SpaceX’s Dragon spacecraft, which provides critical transport services for NASA. Tesla’s stock nosedived, shedding $150 billion in value in a single day.Adding fuel to the fire, Musk reposted a meme calling for Trump’s impeachment and suggested the president’s name may appear in the sealed Jeffrey Epstein files. Trump retaliated by branding Musk “crazy” and dismissing his influence on the campaign as overblown.Now, as their feud dominates headlines and rattles markets, analysts are left wondering what happens next. Trump remains president, but Musk is still one of the most powerful voices in American business. Despite the fallout, their political fates may remain inextricably linked.Musk’s departure from Trump’s orbit doesn’t sever their shared legacy. From reshaping the Republican Party’s donor class to creating a new archetype of tech-political partnership, the pair have already altered the political landscape. And with Musk now hinting at forming a new political party and Trump eyeing legislative victories, their rivalry could shape not just the next election but the future of American governance itself.

The once-close relationship between President Donald Trump and billionaire Elon Musk has collapsed in spectacular fashion—publicly, bitterly, and with potentially far-reaching political and economic consequences.

What began as one of the most powerful political-tech partnerships in modern American history has now devolved into an epic feud. The once-close relationship between President Donald Trump and billionaire Elon Musk has collapsed in spectacular fashion—publicly, bitterly, and with potentially far-reaching political and economic consequences. Just a few months ago, Musk stood beside Trump on the steps of the US Capitol, lauded during the president’s second inaugural address as a “super genius” and “a star”. Today, their mutual admiration has turned into open hostility. Musk has called Trump’s spending bill a “disgusting abomination”, while Trump has threatened to revoke billions of dollars in government contracts with Musk’s companies. It’s a rupture that feels both inevitable and tragic, a classic tale of egos too large to share the same spotlight. A high-wattage beginning The roots of the Trump-Musk alliance trace back to the summer of 2024, when Musk publicly endorsed Trump following an assassination attempt during a campaign rally. From there, the alliance deepened quickly. Musk appeared at Trump rallies, wore MAGA (Make America Great Again) hats, and declared the former president the only candidate who could “preserve democracy in America”. The tech mogul’s social media platform, X, became a digital megaphone for Trump’s re-election campaign. Musk’s political enthusiasm wasn’t limited to cheerleading; he reportedly poured more than $100 million into efforts to return Trump to the White House, emerging as a potent new kingmaker in Republican politics. In return, Trump elevated Musk in ways no modern president has done for a private citizen. Following his election victory in November 2024, Trump appointed Musk to lead the newly created Department of Government Efficiency (DOGE), tasking him with cutting federal waste and reshaping the bureaucratic state. Musk’s role was far from ceremonial. He took part in Cabinet meetings and oversaw budget cuts. Trump defended Musk during global backlash against Tesla, calling him a “patriot” and vowing to buy a Tesla himself. The beginning of the end Despite the theatrics and mutual praise, tensions began to bubble beneath the surface early in 2025. As DOGE aggressively pushed cost-cutting and return-to-office mandates, backlash from federal workers and agencies grew. Musk’s efforts to overhaul agencies like the US. The Institute of Peace sparked internal resistance and mounting political headaches for the administration. By March, Trump made it clear to his Cabinet that Musk was not in charge of federal departments—a subtle but significant reassertion of executive authority. Musk, for his part, publicly claimed the meetings were “productive”, but behind the scenes, his influence was waning. April brought more cracks. Tesla reported disappointing earnings, with shares down more than 40 per cent for the year amid growing investor concern that Musk was overextended. He pledged to reduce his involvement in DOGE, and by May, he had exited the administration altogether, citing frustration with government inefficiency and the administration’s direction. Even then, both men maintained a facade of cordiality. Trump held a farewell event for Musk, calling him “not really gone”, and Musk continued to visit the White House sporadically. But the goodwill would not last. A collision of titans The final break came in June, triggered by Musk’s vocal opposition to Trump’s sweeping tax and spending bill. Musk called the legislation “a disgusting abomination” and accused lawmakers of stuffing it with wasteful “pork”. He argued it undermined the very efficient efforts he had championed at DOGE. Trump initially tried to downplay the criticism but quickly turned combative. He accused Musk of being upset over the rollback of electric vehicle tax credits and dismissed his opposition as “personal”. The response from Musk was swift and scathing. He denied being consulted on the bill, lambasted the rushed legislative process, and suggested that Trump’s leadership was flawed. In a particularly pointed jab, he claimed Trump would have lost the 2024 election without his help. What followed was an extraordinary online brawl. Trump threatened to cancel federal contracts with Musk’s companies—Tesla, SpaceX, and Neuralink among them. Musk responded by threatening to phase out SpaceX’s Dragon spacecraft, which provides critical transport services for NASA. Tesla’s stock nosedived, shedding $150 billion in value in a single day. Adding fuel to the fire, Musk reposted a meme calling for Trump’s impeachment and suggested the president’s name may appear in the sealed Jeffrey Epstein files. Trump retaliated by branding Musk “crazy” and dismissing his influence on the campaign as overblown. Now, as their feud dominates headlines and rattles markets, analysts are left wondering what happens next. Trump remains president, but Musk is still one of the most powerful voices in American business. Despite the fallout, their political fates may remain inextricably linked. Musk’s departure from Trump’s orbit doesn’t sever their shared legacy. From reshaping the Republican Party’s donor class to creating a new archetype of tech-political partnership, the pair have already altered the political landscape. And with Musk now hinting at forming a new political party and Trump eyeing legislative victories, their rivalry could shape not just the next election but the future of American governance itself.

The once-close relationship between President Donald Trump and billionaire Elon Musk has collapsed in spectacular fashion—publicly, bitterly, and with potentially far-reaching political and economic consequences.

From bromance to breakup: The rise and ruin of Trump and Musk’s relationship

In a bold and unexpected move, the Reserve Bank of India (RBI) slashed the repo rate by 50 basis points (bps) to 5.50% on June 6, offering relief to millions of borrowers across the country. This is the third rate cut in a row, bringing the total reduction to 100 bps.&nbsp;The decision, announced after the RBI’s three-day Monetary Policy Committee (MPC) meeting, exceeded market expectations of a modest 25 bps cut.&nbsp;Alongside the repo rate reduction, the RBI also plans to lower the cash reserve ratio (CRR) by 100 bps on four tranches over the year, from 4 per cent to 3 per cent, freeing up an estimated ₹2.5 lakh crore (nearly $29 billion) in liquidity. This double-pronged move is aimed at stimulating lending, boosting economic activity, and lowering borrowing costs for both individuals and businesses.<h2>What is the repo rate, and why does it matter?</h2>The repo rate is the rate at which the RBI lends money to commercial banks. A lower repo rate means banks can borrow funds more cheaply. This, in turn, usually leads banks to reduce interest rates on loans to customers—impacting everything from home loans to auto and personal loans.&nbsp;Retail floating-rate loans issued after October 2019 are linked to external benchmarks, usually the repo rate, which means that EMIs (equated monthly instalments) adjust according to changes in the repo rate.&nbsp;Domestic banks typically pass on these rate cuts to borrowers either fully or partially, depending on their interest reset cycle, which generally occurs within three to six months.<h2>How much will borrowers save?</h2>If banks fully pass on the 50 bps cut, the savings for borrowers could be substantial:&nbsp;Home loan of ₹50 lakh at 8.70 per cent for 30 years:Current EMI: ₹39,136Interest rate drops by 50 bps to 8.20 per cent:New EMI: ₹37,346Monthly Savings: ₹1,790Annual Savings: ₹21,480While the monthly savings might not seem like much, over a 30-year term, even small monthly savings add up to lakhs of rupees and bring real long-term financial relief.&nbsp;Now let's say you took a car loan or a personal loan of ₹5 lakh at 12 per cent for 5 years:Current EMI: ₹11,122Interest rate drops by 50 bps to 11.50 per cent:New EMI: ₹10,963Monthly Savings: ₹159Annual Savings: ₹1,908&nbsp;Borrowers can choose to enjoy the lower EMIs or retain their existing payments and shorten the loan tenure, reducing overall interest paid.<h2>Impact on FD Investors</h2>While the move is positive for borrowers, it could hurt bank fixed deposit (FD) investors. As the RBI’s lending rates drop, banks are expected to reduce FD rates across various tenures, leading to lower returns.&nbsp;Financial advisors suggest locking in current FD rates before they decline or considering alternatives like post office small savings schemes.&nbsp;The RBI’s aggressive rate cut comes amid cooling inflation and global uncertainty. It aims to support domestic consumption and revive credit growth. Borrowers are advised to watch how their banks react to the transmission of rate cuts.&nbsp;For those with existing loans or planning to borrow, the current environment presents a golden opportunity to ease financial pressure or invest in big-ticket purchases like homes or vehicles.

A lower repo rate usually leads banks to reduce interest rates on loans to customers—impacting everything from home loans to auto and personal loans.

In a bold and unexpected move, the Reserve Bank of India (RBI) slashed the repo rate by 50 basis points (bps) to 5.50% on June 6, offering relief to millions of borrowers across the country. This is the third rate cut in a row, bringing the total reduction to 100 bps. The decision, announced after the RBI’s three-day Monetary Policy Committee (MPC) meeting, exceeded market expectations of a modest 25 bps cut. Alongside the repo rate reduction, the RBI also plans to lower the cash reserve ratio (CRR) by 100 bps on four tranches over the year, from 4 per cent to 3 per cent, freeing up an estimated ₹2.5 lakh crore (nearly $29 billion) in liquidity. This double-pronged move is aimed at stimulating lending, boosting economic activity, and lowering borrowing costs for both individuals and businesses. What is the repo rate, and why does it matter? The repo rate is the rate at which the RBI lends money to commercial banks. A lower repo rate means banks can borrow funds more cheaply. This, in turn, usually leads banks to reduce interest rates on loans to customers—impacting everything from home loans to auto and personal loans. Retail floating-rate loans issued after October 2019 are linked to external benchmarks, usually the repo rate, which means that EMIs (equated monthly instalments) adjust according to changes in the repo rate. Domestic banks typically pass on these rate cuts to borrowers either fully or partially, depending on their interest reset cycle, which generally occurs within three to six months. How much will borrowers save? If banks fully pass on the 50 bps cut, the savings for borrowers could be substantial: Home loan of ₹50 lakh at 8.70 per cent for 30 years: Current EMI: ₹39,136 Interest rate drops by 50 bps to 8.20 per cent: New EMI: ₹37,346 Monthly Savings: ₹1,790 Annual Savings: ₹21,480 While the monthly savings might not seem like much, over a 30-year term, even small monthly savings add up to lakhs of rupees and bring real long-term financial relief. Now let's say you took a car loan or a personal loan of ₹5 lakh at 12 per cent for 5 years: Current EMI: ₹11,122 Interest rate drops by 50 bps to 11.50 per cent: New EMI: ₹10,963 Monthly Savings: ₹159 Annual Savings: ₹1,908 Borrowers can choose to enjoy the lower EMIs or retain their existing payments and shorten the loan tenure, reducing overall interest paid. Impact on FD Investors While the move is positive for borrowers, it could hurt bank fixed deposit (FD) investors. As the RBI’s lending rates drop, banks are expected to reduce FD rates across various tenures, leading to lower returns. Financial advisors suggest locking in current FD rates before they decline or considering alternatives like post office small savings schemes. The RBI’s aggressive rate cut comes amid cooling inflation and global uncertainty. It aims to support domestic consumption and revive credit growth. Borrowers are advised to watch how their banks react to the transmission of rate cuts. For those with existing loans or planning to borrow, the current environment presents a golden opportunity to ease financial pressure or invest in big-ticket purchases like homes or vehicles.

A lower repo rate usually leads banks to reduce interest rates on loans to customers—impacting everything from home loans to auto and personal loans.

RBI’s repo rate cut: What it means for your loans and FD?

The US job market continued its steady growth in May 2025, with total nonfarm payroll employment increasing by 139,000, according to the latest report from the Bureau of Labor Statistics (BLS). The unemployment rate held steady at 4.2 per cent, a level it has hovered around since May 2024.Hiring was driven by notable gains in health care, leisure and hospitality, and social assistance, while federal government employment continued to shrink. The increase was slightly below the monthly average of 149,000 jobs seen over the past year, signalling a stable but cooling labour market.Health care saw the strongest performance, adding 62,000 jobs. Within the sector, hospitals and outpatient care services led the charge, contributing 30,000 and 29,000 new positions, respectively.The leisure and hospitality industry also showed robust growth, adding 48,000 jobs, with 30,000 of those in food services and drinking establishments. Social assistance roles, particularly in individual and family services, grew by 16,000 jobs.US President Donald Trump’s aggressive protectionist policies, especially his sweeping tariffs on imports, have muddied the outlook for the economy and the job market and raised fears that the American economy could be headed toward recession. But so far the damage hasn’t shown up clearly in government economic data.Economists say Trump’s flip-flopping on import tariffs has hampered businesses’ ability to plan ahead and hire more workers. Opposition to Trump’s tax cut and spending bill from conservative Republicans in the US Senate and tech billionaire Elon Musk has added another layer of uncertainty for companies.<h2>Workforce participation slips</h2>While the headline unemployment rate stayed unchanged, some underlying figures revealed subtle shifts. The number of unemployed people rose slightly to 7.2 million, with a notable increase in those jobless for less than five weeks, suggesting recent layoffs. Meanwhile, the number of long-term unemployed (those out of work for 27 weeks or more) dropped by 218,000 to 1.5 million.However, fewer people were participating in the workforce. The labour force participation rate declined to 62.4 per cent, and the employment-population ratio dipped to 59.7 per cent. These decreases suggest that some individuals may have stopped looking for work or are facing barriers to employment.There was also little change in the number of people working part-time for economic reasons, which remained at 4.6 million. These are individuals who would prefer full-time employment but are unable to find it or had their hours cut.<h2>Federal government jobs drop again</h2>One of the few areas to record a clear decline was the federal government, which lost 22,000 jobs in May. Since January 2025, federal employment has decreased by 59,000. The BLS clarified that employees on paid leave or receiving severance are still counted as employed, so these losses reflect deeper structural reductions.Most other industries, including construction, manufacturing, retail trade, and professional services, showed little or no net change in employment last month.<h2>Wages rise modestly</h2>On the earnings front, average hourly wages for all private-sector employees rose by 15 cents, or 0.4 per cent, to $36.24. Over the past 12 months, wages have grown by 3.9 per cent. Production and non-supervisory employees saw similar wage growth, with average hourly earnings rising to $31.18.President Trump cheered the numbers, posting on his Truth Social platform on June 6, saying, "America is hot! Six months ago it was cold as ice! Border is closed, prices are down. Wages are up!"The average workweek remained steady at 34.3 hours, unchanged for the third consecutive month.While job growth continues, recent revisions to prior months’ data show the economy added fewer jobs than originally reported. March’s job gains were revised down by 65,000 to 120,000, and April’s by 30,000 to 147,000, bringing the combined downward revision to 95,000.NBC News reported that analysts with ManpowerGroup said in a note that the report points to “a labour market that is steady but cautious in the face of ongoing uncertainty”.

Hiring was driven by notable gains in health care, leisure and hospitality, and social assistance, while federal government employment continued to shrink. 

The US job market continued its steady growth in May 2025, with total nonfarm payroll employment increasing by 139,000, according to the latest report from the Bureau of Labor Statistics (BLS). The unemployment rate held steady at 4.2 per cent, a level it has hovered around since May 2024. Hiring was driven by notable gains in health care, leisure and hospitality, and social assistance, while federal government employment continued to shrink. The increase was slightly below the monthly average of 149,000 jobs seen over the past year, signalling a stable but cooling labour market. Health care saw the strongest performance, adding 62,000 jobs. Within the sector, hospitals and outpatient care services led the charge, contributing 30,000 and 29,000 new positions, respectively. The leisure and hospitality industry also showed robust growth, adding 48,000 jobs, with 30,000 of those in food services and drinking establishments. Social assistance roles, particularly in individual and family services, grew by 16,000 jobs. US President Donald Trump’s aggressive protectionist policies, especially his sweeping tariffs on imports, have muddied the outlook for the economy and the job market and raised fears that the American economy could be headed toward recession. But so far the damage hasn’t shown up clearly in government economic data. Economists say Trump’s flip-flopping on import tariffs has hampered businesses’ ability to plan ahead and hire more workers. Opposition to Trump’s tax cut and spending bill from conservative Republicans in the US Senate and tech billionaire Elon Musk has added another layer of uncertainty for companies. Workforce participation slips While the headline unemployment rate stayed unchanged, some underlying figures revealed subtle shifts. The number of unemployed people rose slightly to 7.2 million, with a notable increase in those jobless for less than five weeks, suggesting recent layoffs. Meanwhile, the number of long-term unemployed (those out of work for 27 weeks or more) dropped by 218,000 to 1.5 million. However, fewer people were participating in the workforce. The labour force participation rate declined to 62.4 per cent, and the employment-population ratio dipped to 59.7 per cent. These decreases suggest that some individuals may have stopped looking for work or are facing barriers to employment. There was also little change in the number of people working part-time for economic reasons, which remained at 4.6 million. These are individuals who would prefer full-time employment but are unable to find it or had their hours cut. Federal government jobs drop again One of the few areas to record a clear decline was the federal government, which lost 22,000 jobs in May. Since January 2025, federal employment has decreased by 59,000. The BLS clarified that employees on paid leave or receiving severance are still counted as employed, so these losses reflect deeper structural reductions. Most other industries, including construction, manufacturing, retail trade, and professional services, showed little or no net change in employment last month. Wages rise modestly On the earnings front, average hourly wages for all private-sector employees rose by 15 cents, or 0.4 per cent, to $36.24. Over the past 12 months, wages have grown by 3.9 per cent. Production and non-supervisory employees saw similar wage growth, with average hourly earnings rising to $31.18. President Trump cheered the numbers, posting on his Truth Social platform on June 6, saying, "America is hot! Six months ago it was cold as ice! Border is closed, prices are down. Wages are up!" The average workweek remained steady at 34.3 hours, unchanged for the third consecutive month. While job growth continues, recent revisions to prior months’ data show the economy added fewer jobs than originally reported. March’s job gains were revised down by 65,000 to 120,000, and April’s by 30,000 to 147,000, bringing the combined downward revision to 95,000. NBC News reported that analysts with ManpowerGroup said in a note that the report points to “a labour market that is steady but cautious in the face of ongoing uncertainty”.

Hiring was driven by notable gains in health care, leisure and hospitality, and social assistance, while federal government employment continued to shrink.&nbsp;

US employment rises moderately in May; unemployment steady at 4.2%

Indian equity markets ended the week on a high note, propelled by the Reserve Bank of India’s (RBI) unexpected move to slash the repo rate by 50 basis points (bps) and the cash reserve ratio (CRR) by 100 bps.The aggressive policy easing reversed two weeks of negative sentiment, sparking a strong rally across sectors. The Nifty surged past the 25,000 mark closing at 25,003.05 after rising 252.15 points, or 1.02 per cent. While the Sensex gained 746.95 points, or 0.92 per cent, to close at 82,188.99, marking one of the strongest weekly performances in recent times.<h2>Rate-sensitive sectors drive gains</h2>The RBI’s policy, coupled with a shift in stance from ‘accommodative’ to ‘neutral’, signalled a decisive pro-growth pivot, igniting optimism among investors.The Nifty Realty index surged 4.68 per cent, emerging as the top-performing sector, as hopes of a housing demand revival gained momentum. Financials followed closely, with the Nifty Bank and Financial Services indices climbing 1.5 per cent and 1.75 per cent, respectively, driven by gains in top lenders and NBFCs. Auto stocks also rallied, contributing to the upbeat sentiment.Market heavyweights HDFC Bank and Bajaj Finance were among the biggest individual contributors to the Nifty’s rally, adding 48 and 25 points, respectively. Axis Bank, M&amp;M, and Shriram Finance also featured prominently among the top gainers.Meanwhile, the broader markets outperformed, with the Nifty Midcap index rising 3 per cent for the week and 1.2 per cent on June 6 alone. The Nifty Smallcap index added 0.8 per cent.<h2>Investors add ₹3.6 lakh crore in a single session</h2>The RBI’s dovish stance had an immediate impact on investor wealth. The market capitalisation of BSE-listed companies jumped by ₹3.6 lakh crore (nearly $42 billion) in Friday’s session alone, pushing total market cap to ₹451.1 lakh crore (almost $5,262 billion).The advance-decline ratio remained robust at 3:2, signalling widespread investor participation. In total, 46 out of the 50 Nifty stocks posted gains during the week, with some surging over 10 per cent.Notably, gold loan financiers like Muthoot Finance saw strong buying interest as the RBI hinted at easing norms for unsecured loans, further lifting sector sentiment.<h2>Markets eye further upside; analysts advise caution</h2>Despite the week’s strong gains, analysts maintain a cautious optimism. The Nifty, while still in a consolidation phase, is now eyeing a breakout above the 25,200 level. A decisive move beyond this could pave the way for a fresh rally towards 25,600. Technical indicators remain supportive, particularly with the Nifty Bank index touching a new 52-week high of 56,584.Volatility also declined, with the India VIX falling over 2 per cent, indicating cooling risk perception. Meanwhile, the RBI’s decision to lower the CPI inflation forecast for FY26 to 3.7 per cent further strengthened the case for an extended easing cycle.Looking ahead, rate-sensitive sectors like financials, realty, and auto are expected to stay in focus. Themes like infrastructure and railways could also benefit from the evolving pro-growth environment.

The aggressive policy easing reversed two weeks of negative sentiment, sparking a strong rally across sectors. The Nifty surged past the 25,000 mark 

Indian equity markets ended the week on a high note, propelled by the Reserve Bank of India’s (RBI) unexpected move to slash the repo rate by 50 basis points (bps) and the cash reserve ratio (CRR) by 100 bps. The aggressive policy easing reversed two weeks of negative sentiment, sparking a strong rally across sectors. The Nifty surged past the 25,000 mark closing at 25,003.05 after rising 252.15 points, or 1.02 per cent. While the Sensex gained 746.95 points, or 0.92 per cent, to close at 82,188.99, marking one of the strongest weekly performances in recent times. Rate-sensitive sectors drive gains The RBI’s policy, coupled with a shift in stance from ‘accommodative’ to ‘neutral’, signalled a decisive pro-growth pivot, igniting optimism among investors. The Nifty Realty index surged 4.68 per cent, emerging as the top-performing sector, as hopes of a housing demand revival gained momentum. Financials followed closely, with the Nifty Bank and Financial Services indices climbing 1.5 per cent and 1.75 per cent, respectively, driven by gains in top lenders and NBFCs. Auto stocks also rallied, contributing to the upbeat sentiment. Market heavyweights HDFC Bank and Bajaj Finance were among the biggest individual contributors to the Nifty’s rally, adding 48 and 25 points, respectively. Axis Bank, M&M, and Shriram Finance also featured prominently among the top gainers. Meanwhile, the broader markets outperformed, with the Nifty Midcap index rising 3 per cent for the week and 1.2 per cent on June 6 alone. The Nifty Smallcap index added 0.8 per cent. Investors add ₹3.6 lakh crore in a single session The RBI’s dovish stance had an immediate impact on investor wealth. The market capitalisation of BSE-listed companies jumped by ₹3.6 lakh crore (nearly $42 billion) in Friday’s session alone, pushing total market cap to ₹451.1 lakh crore (almost $5,262 billion). The advance-decline ratio remained robust at 3:2, signalling widespread investor participation. In total, 46 out of the 50 Nifty stocks posted gains during the week, with some surging over 10 per cent. Notably, gold loan financiers like Muthoot Finance saw strong buying interest as the RBI hinted at easing norms for unsecured loans, further lifting sector sentiment. Markets eye further upside; analysts advise caution Despite the week’s strong gains, analysts maintain a cautious optimism. The Nifty, while still in a consolidation phase, is now eyeing a breakout above the 25,200 level. A decisive move beyond this could pave the way for a fresh rally towards 25,600. Technical indicators remain supportive, particularly with the Nifty Bank index touching a new 52-week high of 56,584. Volatility also declined, with the India VIX falling over 2 per cent, indicating cooling risk perception. Meanwhile, the RBI’s decision to lower the CPI inflation forecast for FY26 to 3.7 per cent further strengthened the case for an extended easing cycle. Looking ahead, rate-sensitive sectors like financials, realty, and auto are expected to stay in focus. Themes like infrastructure and railways could also benefit from the evolving pro-growth environment.

The aggressive policy easing reversed two weeks of negative sentiment, sparking a strong rally across sectors. The Nifty surged past the 25,000 mark.

Indian equity markets ride the RBI rate cut tide to recoup losses

A growing number of American and international companies are slashing jobs in response to President Donald Trump’s sweeping tariffs on global imports. The wave of layoffs, spanning industries from automobiles to consumer goods, is raising red flags about the health of the US labour market and its economic trajectory.Trump’s latest trade policy, rolled out in late March 2025, imposes a 25 per cent tariff on all automobile and auto parts imports, along with days later in April imposing sweeping tariffs on over a dozen trading partners.The Trump administration has framed the move as a national security measure to protect domestic manufacturing. However, the real-world impact is proving far more complex—and costly.The tariffs have increased cost pressure on companies, and while some companies have decided to pass on the additional cost to the consumer, some have resorted to cutting costs by reducing their workforce.<h3>Thousands laid off across sectors</h3>In just the last few weeks, companies have reported mass job cuts and halted production at facilities across North America. Stellantis NV has temporarily laid off 900 workers in the US and halted output at plants in Mexico and Canada, citing medium- and long-term effects of the tariffs.Volvo Group and Mack Trucks, both hit hard by tariff-related cost spikes and falling demand, have announced more than 800 job cuts across Pennsylvania, Virginia, and Maryland. Meanwhile, Swedish fintech company Klarna is slashing 40 per cent of its workforce as it leans into AI to reduce costs.Consumer goods giant Procter &amp; Gamble is planning to cut 7,000 jobs, nearly 6 per cent of its workforce, over the next two years. The company cited uneven demand and increased input costs due to trade disruptions.Some news reports also revealed that the company plans to exit certain product categories and markets. P&amp;G imports several raw materials and packaging components from China, making it particularly vulnerable to tariff-related price volatility.Steelmaker Cleveland-Cliffs laid off over 1,200 workers, while UPS is cutting 20,000 jobs after seeing a sharp reduction in shipments from major clients like Amazon.Even tech giants like Microsoft, Google, and Amazon have announced tens of thousands of role reductions, citing a mix of automation, falling demand, and global cost pressures.Congressman Ro Khanna has criticised the tariff-driven chaos. “This week, 19 factories had mass layoffs, 15 closed, and over 4,100 factory workers lost their jobs,” he posted on X. He also warned that the latest round of protectionist policies could trigger broader economic pain.<h3>Economists sound alarm over recession risk</h3>Wall Street is increasingly concerned. JPMorgan’s chief US economist Michael Feroli has downgraded GDP growth projections from 1.3 per cent to -0.3 per cent for 2025, stating that the economy is now expected to contract under the “weight of the tariffs”.Federal Reserve Chair Jerome Powell has echoed the concern, noting that the tariffs may cause persistent inflation and economic drag—effects that could outweigh their intended industrial benefits.Globally, the International Monetary Fund (IMF) has projected a 2.8 per cent annual decline in global output, including a 1.8 per cent drop for the US, due to the new wave of trade barriers.Meanwhile, European brewers are warning of 100,000 potential job losses if the US follows through with levies on beer imports from the EU and Mexico.While the recent job data released in the US has indicated an uptick in hiring and has offered a glimmer of hope for the US labour market, the concerns about unemployment loom as the data also showed a rise in layoffs.Despite these warnings, Trump and his supporters continue to defend the policy as a step toward reshoring industry and protecting US jobs. But, at least so far, the reality playing out on the ground tells a different story.

The wave of layoffs, spanning industries from automobiles to consumer goods, is raising red flags about the health of the US labour market and its economic trajectory.

A growing number of American and international companies are slashing jobs in response to President Donald Trump’s sweeping tariffs on global imports. The wave of layoffs, spanning industries from automobiles to consumer goods, is raising red flags about the health of the US labour market and its economic trajectory. Trump’s latest trade policy, rolled out in late March 2025, imposes a 25 per cent tariff on all automobile and auto parts imports, along with days later in April imposing sweeping tariffs on over a dozen trading partners. The Trump administration has framed the move as a national security measure to protect domestic manufacturing. However, the real-world impact is proving far more complex—and costly. The tariffs have increased cost pressure on companies, and while some companies have decided to pass on the additional cost to the consumer, some have resorted to cutting costs by reducing their workforce. Thousands laid off across sectors In just the last few weeks, companies have reported mass job cuts and halted production at facilities across North America. Stellantis NV has temporarily laid off 900 workers in the US and halted output at plants in Mexico and Canada, citing medium- and long-term effects of the tariffs. Volvo Group and Mack Trucks, both hit hard by tariff-related cost spikes and falling demand, have announced more than 800 job cuts across Pennsylvania, Virginia, and Maryland. Meanwhile, Swedish fintech company Klarna is slashing 40 per cent of its workforce as it leans into AI to reduce costs. Consumer goods giant Procter & Gamble is planning to cut 7,000 jobs, nearly 6 per cent of its workforce, over the next two years. The company cited uneven demand and increased input costs due to trade disruptions. Some news reports also revealed that the company plans to exit certain product categories and markets. P&G imports several raw materials and packaging components from China, making it particularly vulnerable to tariff-related price volatility. Steelmaker Cleveland-Cliffs laid off over 1,200 workers, while UPS is cutting 20,000 jobs after seeing a sharp reduction in shipments from major clients like Amazon. Even tech giants like Microsoft, Google, and Amazon have announced tens of thousands of role reductions, citing a mix of automation, falling demand, and global cost pressures. Congressman Ro Khanna has criticised the tariff-driven chaos. “This week, 19 factories had mass layoffs, 15 closed, and over 4,100 factory workers lost their jobs,” he posted on X. He also warned that the latest round of protectionist policies could trigger broader economic pain. Economists sound alarm over recession risk Wall Street is increasingly concerned. JPMorgan’s chief US economist Michael Feroli has downgraded GDP growth projections from 1.3 per cent to -0.3 per cent for 2025, stating that the economy is now expected to contract under the “weight of the tariffs”. Federal Reserve Chair Jerome Powell has echoed the concern, noting that the tariffs may cause persistent inflation and economic drag—effects that could outweigh their intended industrial benefits. Globally, the International Monetary Fund (IMF) has projected a 2.8 per cent annual decline in global output, including a 1.8 per cent drop for the US, due to the new wave of trade barriers. Meanwhile, European brewers are warning of 100,000 potential job losses if the US follows through with levies on beer imports from the EU and Mexico. While the recent job data released in the US has indicated an uptick in hiring and has offered a glimmer of hope for the US labour market, the concerns about unemployment loom as the data also showed a rise in layoffs. Despite these warnings, Trump and his supporters continue to defend the policy as a step toward reshoring industry and protecting US jobs. But, at least so far, the reality playing out on the ground tells a different story.

The wave of layoffs, spanning industries from automobiles to consumer goods, is raising red flags about the health of the US labour market and its economic trajectory.

Trade restrictions spark layoffs at major firms as recession risk rise

In a surprise move, the Reserve Bank of India slashed the repo rate by 50 basis points to 5.5 per cent and reduced the Cash Reserve Ratio (CRR) by 100 basis points in a staggered manner.&nbsp;&nbsp;The central bank also shifted its policy stance from 'accommodative' to 'neutral'.&nbsp;Here's what economists, strategists, and leaders from the banking and finance industry had to say:&nbsp;"RBI’s bold move: what next after it cuts by 50bp?": Deepali Bhargava, Regional Head of Research, Asia-Pacific, ING "The RBI cut policy rates by more than expected and changed its policy stance from accommodative to neutral. We think that with this move, the RBI is signalling a near-term pause, while leaving the door open for more easing if growth or inflation weakens further. We continue to expect another 25bp rate cut in the fourth quarter of this year."&nbsp;"Neutral stance suggests fewer rate cuts ahead": Jeff Ng, Head of Asia Macro Strategy, Sumitomo Mitsui Banking Corporation "RBI may have decided to move quickly to a more appropriate policy rate level after recent headwinds and low inflation prints. A shift toward neutral stance means more rate cuts may be unlikely in the near-term."&nbsp;"MPC delivered major surprises with repo, CRR cuts": Siddhartha Sanyal, Chief Economist &amp; Head of Research at Bandhan Bank"Today’s monetary policy committee (MPC) meeting sprang several major surprises. The 50-basis point repo rate cut came in as a surprise against consensus and our expectation of a 25bp rate cut. However, given the change in stance of monetary policy from “accommodative” to “neutral” and the RBI’s communication of very little space for more support from monetary policy, our expectation of a terminal repo rate of 5.50% in the current cycle remains largely unchanged.&nbsp;The larger than expected rate cut, coupled with announcement of a large CRR cut around the beginning of the busy season, brings in more focus on transmission of the monetary policy actions into the real economy. Today’s announcement will not only push banks’ external benchmark linked lending rates lower, but will also lower MCLR and deposit rates, thereby, bringing in greater pace and intensity to transmission."&nbsp;"Action-packed policy, out-of-the-box thinking": C.S. Setty, Chairman at SBI &amp; Chairman at IBA"A 50-bps policy rate cut, a staggered 100 bps CRR cut and change of stance to neutral, RBI today's monetary policy communication was action packed - innovative, out of the box and an unanticipated surprise. The MPC has broadly addressed any concerns on slowdown in growth on account of global uncertainties and fully capitalized on the softening domestic inflation to deliver a frontloaded rate cut, staggered durable liquidity injection yet conserving the space for future action.&nbsp;The policy is definitely positive for all sectors of the economy, particularly for banking and finance. In particular lower cost of borrowing will act as a counterbalance to any uncertainty."&nbsp;“Very dovish policy, capex boost expected”: Sagar Shah, Head – Domestic Markets, RBL Bank "Very dovish policy frontloading the Repo cut and liquidity infusion. Reduced cost of capital will lay groundwork for capex with a lag of 2 quarters. CRR cut along with Repo cut should lead to transmission faster."&nbsp;"RBI wants banks to act fast": Venkatakrishnan Srinivasan, Managing Partner, Rockfort Fincap"The RBI has front-loaded everything and wants banks to react now. By changing the stance, I think they are trying to indicate no immediate rate cuts."&nbsp;"Transmission now rests with banks": Madhavi Arora, Economist, Emkay Global Financial Services Ltd. "The ball is in the banks’ court to transmit easier financial conditions faster."&nbsp;"RBI’s intent is growth support amid uncertainty": Amit Bivalkar, Founder Director, Sapient Finserv"The RBI’s decision to cut the repo rate by a sharper-than-expected 50 basis points to 5.5% reflects its strong intent to support economic growth amid rising global uncertainties and weak domestic demand. The cumulative 100 bps cut since February 2025, along with the phased 1% CRR reduction, will ease borrowing costs and improve liquidity in the system, potentially boosting credit flow. However, with the shift in stance from ‘accommodative’ to ‘neutral’, the central bank has signaled a pause, choosing to closely monitor inflation trends and global developments before taking further action."&nbsp;"CRR cut to release ₹2.5 lakh crore liquidity": Dr. Manoranjan Sharma, Chief Economist, Infomerics Valuation and Ratings Ltd. "The RBI’s Monetary Policy Committee (MPC) exceeded expectations by slashing the Repo rate by 50 basis points. Further, the cash reserve ratio (CRR) was reduced by 100 basis points from 4% to 3% in a staggered manner, implemented in four equal tranches of 25 basis points each, in the fortnights beginning September 6, October 4, November 1, and November 29 to provide durable liquidity. The cut in CRR is expected to release primary liquidity of about Rs 2.5 lakh crore to the banking system by the end of November 2025.&nbsp;The RBI changed its stance from ‘accommodative’ to ‘neutral.’ The outlook for food inflation is soft, and the core inflation outlook remains benign. Given the benign inflation, the inflation forecast for the year has been revised downward from 4% to 3.7%. The FY26 GDP growth forecast is maintained at 6.5 %. The risks are evenly balanced."&nbsp;"Rate cuts will spur lending, jobs, and growth": Dharan Shah, Founder, Tradonomy.AI "The RBI's decisive 50 bps repo rate cut to 5.5% and a 100 bps CRR reduction over four quarters unleash a powerful boost for India’s economy. By lowering borrowing costs and freeing up bank liquidity, sectors like real estate, automobiles, and consumer durables are set to thrive. With CPI inflation at 3.7% and FY26 GDP growth projected at 6.5%, fueled by steady rural demand and rising urban consumption, the USDINR forward rate at ~86.72 signals stability. This dual policy move will likely spur lending, investment, and job creation, despite global uncertainties. Now the RBI stance being neutral, all future RBI events for the next few quarters will be non-events."&nbsp;"Complex messaging: easing now, caution ahead": Sandeep Bagla, CEO, TRUST Mutual Fund"MPC frontloaded the rate cuts, reducing repo rates by 50 bps and also cut CRR by 100 bps. These measures came as a positive surprise to equity markets as there will be greater impetus to growth and there could be faster pick up in the interest rate sectors. Oddly, RBI also changed its stance from accommodative to neutral, thereby signaling that further softening of monetary conditions may not be easily forthcoming. Bond markets experienced some steepening with shorter end of the yield curve seeing some softening. It is complex messaging from RBI where they have eased the policy rates and liquidity but made no promises for the future."&nbsp;"Rate cuts support markets and rupee": Amit Pabari, MD, CR Forex "The Reserve Bank of India has delivered a sharper-than-expected policy easing, cutting the repo rate by 50 basis points to 5.5% and slashing the Cash Reserve Ratio by 100 basis points to 3%. These aggressive rate cuts are providing strong support to Indian equity markets, while the CRR reduction is expected to inject approximately ₹2.5 lakh crore of liquidity into the banking system.In addition, the RBI has shifted its policy stance from 'accommodative' to 'neutral', signalling that interest rates are likely to remain stable in the near term, which is supporting the rupee and limiting any further depreciation."&nbsp;

The central bank also shifted its policy stance from accommodative to neutral. 

In a surprise move, the Reserve Bank of India slashed the repo rate by 50 basis points to 5.5 per cent and reduced the Cash Reserve Ratio (CRR) by 100 basis points in a staggered manner. The central bank also shifted its policy stance from 'accommodative' to 'neutral'. Here's what economists, strategists, and leaders from the banking and finance industry had to say: "RBI’s bold move: what next after it cuts by 50bp?": Deepali Bhargava, Regional Head of Research, Asia-Pacific, ING "The RBI cut policy rates by more than expected and changed its policy stance from accommodative to neutral. We think that with this move, the RBI is signalling a near-term pause, while leaving the door open for more easing if growth or inflation weakens further. We continue to expect another 25bp rate cut in the fourth quarter of this year." "Neutral stance suggests fewer rate cuts ahead": Jeff Ng, Head of Asia Macro Strategy, Sumitomo Mitsui Banking Corporation "RBI may have decided to move quickly to a more appropriate policy rate level after recent headwinds and low inflation prints. A shift toward neutral stance means more rate cuts may be unlikely in the near-term." "MPC delivered major surprises with repo, CRR cuts": Siddhartha Sanyal, Chief Economist & Head of Research at Bandhan Bank "Today’s monetary policy committee (MPC) meeting sprang several major surprises. The 50-basis point repo rate cut came in as a surprise against consensus and our expectation of a 25bp rate cut. However, given the change in stance of monetary policy from “accommodative” to “neutral” and the RBI’s communication of very little space for more support from monetary policy, our expectation of a terminal repo rate of 5.50% in the current cycle remains largely unchanged. The larger than expected rate cut, coupled with announcement of a large CRR cut around the beginning of the busy season, brings in more focus on transmission of the monetary policy actions into the real economy. Today’s announcement will not only push banks’ external benchmark linked lending rates lower, but will also lower MCLR and deposit rates, thereby, bringing in greater pace and intensity to transmission." "Action-packed policy, out-of-the-box thinking": C.S. Setty, Chairman at SBI & Chairman at IBA "A 50-bps policy rate cut, a staggered 100 bps CRR cut and change of stance to neutral, RBI today's monetary policy communication was action packed - innovative, out of the box and an unanticipated surprise. The MPC has broadly addressed any concerns on slowdown in growth on account of global uncertainties and fully capitalized on the softening domestic inflation to deliver a frontloaded rate cut, staggered durable liquidity injection yet conserving the space for future action. The policy is definitely positive for all sectors of the economy, particularly for banking and finance. In particular lower cost of borrowing will act as a counterbalance to any uncertainty." “Very dovish policy, capex boost expected”: Sagar Shah, Head – Domestic Markets, RBL Bank "Very dovish policy frontloading the Repo cut and liquidity infusion. Reduced cost of capital will lay groundwork for capex with a lag of 2 quarters. CRR cut along with Repo cut should lead to transmission faster." "RBI wants banks to act fast": Venkatakrishnan Srinivasan, Managing Partner, Rockfort Fincap "The RBI has front-loaded everything and wants banks to react now. By changing the stance, I think they are trying to indicate no immediate rate cuts." "Transmission now rests with banks": Madhavi Arora, Economist, Emkay Global Financial Services Ltd. "The ball is in the banks’ court to transmit easier financial conditions faster." "RBI’s intent is growth support amid uncertainty": Amit Bivalkar, Founder Director, Sapient Finserv "The RBI’s decision to cut the repo rate by a sharper-than-expected 50 basis points to 5.5% reflects its strong intent to support economic growth amid rising global uncertainties and weak domestic demand. The cumulative 100 bps cut since February 2025, along with the phased 1% CRR reduction, will ease borrowing costs and improve liquidity in the system, potentially boosting credit flow. However, with the shift in stance from ‘accommodative’ to ‘neutral’, the central bank has signaled a pause, choosing to closely monitor inflation trends and global developments before taking further action." "CRR cut to release ₹2.5 lakh crore liquidity": Dr. Manoranjan Sharma, Chief Economist, Infomerics Valuation and Ratings Ltd. "The RBI’s Monetary Policy Committee (MPC) exceeded expectations by slashing the Repo rate by 50 basis points. Further, the cash reserve ratio (CRR) was reduced by 100 basis points from 4% to 3% in a staggered manner, implemented in four equal tranches of 25 basis points each, in the fortnights beginning September 6, October 4, November 1, and November 29 to provide durable liquidity. The cut in CRR is expected to release primary liquidity of about Rs 2.5 lakh crore to the banking system by the end of November 2025. The RBI changed its stance from ‘accommodative’ to ‘neutral.’ The outlook for food inflation is soft, and the core inflation outlook remains benign. Given the benign inflation, the inflation forecast for the year has been revised downward from 4% to 3.7%. The FY26 GDP growth forecast is maintained at 6.5 %. The risks are evenly balanced." "Rate cuts will spur lending, jobs, and growth": Dharan Shah, Founder, Tradonomy.AI "The RBI's decisive 50 bps repo rate cut to 5.5% and a 100 bps CRR reduction over four quarters unleash a powerful boost for India’s economy. By lowering borrowing costs and freeing up bank liquidity, sectors like real estate, automobiles, and consumer durables are set to thrive. With CPI inflation at 3.7% and FY26 GDP growth projected at 6.5%, fueled by steady rural demand and rising urban consumption, the USDINR forward rate at ~86.72 signals stability. This dual policy move will likely spur lending, investment, and job creation, despite global uncertainties. Now the RBI stance being neutral, all future RBI events for the next few quarters will be non-events." "Complex messaging: easing now, caution ahead": Sandeep Bagla, CEO, TRUST Mutual Fund "MPC frontloaded the rate cuts, reducing repo rates by 50 bps and also cut CRR by 100 bps. These measures came as a positive surprise to equity markets as there will be greater impetus to growth and there could be faster pick up in the interest rate sectors. Oddly, RBI also changed its stance from accommodative to neutral, thereby signaling that further softening of monetary conditions may not be easily forthcoming. Bond markets experienced some steepening with shorter end of the yield curve seeing some softening. It is complex messaging from RBI where they have eased the policy rates and liquidity but made no promises for the future." "Rate cuts support markets and rupee": Amit Pabari, MD, CR Forex "The Reserve Bank of India has delivered a sharper-than-expected policy easing, cutting the repo rate by 50 basis points to 5.5% and slashing the Cash Reserve Ratio by 100 basis points to 3%. These aggressive rate cuts are providing strong support to Indian equity markets, while the CRR reduction is expected to inject approximately ₹2.5 lakh crore of liquidity into the banking system. In addition, the RBI has shifted its policy stance from 'accommodative' to 'neutral', signalling that interest rates are likely to remain stable in the near term, which is supporting the rupee and limiting any further depreciation."

Amid global trade tensions, RBI’s surprise 50 bps repo rate cut triggered sharp reactions from top economists, bankers, and strategists.

RBI's bold 50 bps rate cut sparks market buzz: Here's what they say

RBI MPC meeting LIVE Updates: The Reserve Bank of India delivered a powerful policy push this morning, announcing a 50 basis point cut in the repo rate—its third in a row—bringing it down to 5.5 per cent. In a surprise move, the RBI also slashed the Cash Reserve Ratio (CRR) by 100 basis points to 3 per cent, unleashing fresh liquidity into the banking system.RBI Governor Sanjay Malhotra said inflation has eased over the past six months, prompting the central bank to revise its FY26 CPI forecast down to 3.7 per cent from 4 per cent. Meanwhile, India’s GDP growth for FY2025 is projected at a solid 6.5 per cent, backed by steady rural demand and improving urban consumption.Markets cheered the announcements—Sensex and Nifty rebounded sharply, turning green after a weak start, as investors welcomed the growth-supportive stance.

"Reserve Bank of India's bold move: what next after it cuts by 50bp? The RBI cut policy rates by more than expected and changed its policy stance from accommodative to neutral. We think that with this move, the RBI is signalling a near-term pause, while leaving the door open for more easing if growth or inflation weakens further. We continue to expect another 25bp rate cut in the fourth quarter of this year."

Here is the view of Deepali Bhargava, Regional Head of Research, Asia-Pacific, ING:

"RBI may have decided to move quickly to a more appropriate policy rate level after recent headwinds and low inflation prints. A shift toward neutral stance means more rate cuts may be unlikely in the near-term.”

Here is the view of Jeff Ng, Head of Asia Macro Strategy, Sumitomo Mitsui Banking Corporation:

"Today’s monetary policy committee (MPC) meeting sprang several major surprises. The 50 basis point repo rate cut came in as a surprise against consensus and our expectation of a 25bp rate cut. However, given the change in stance of monetary policy from “accommodative” to “neutral” and the RBI’s communication of very little space for more support from monetary policy, our expectation of a terminal repo rate of 5.50% in the current cycle remains largely unchanged.The larger than expected rate cut, coupled with announcement of a large CRR cut around the beginning of the busy season, brings in more focus on transmission of the monetary policy actions into the real economy. Today’s announcement will not only push banks’ external benchmark linked lending rates lower, but will also lower MCLR and deposit rates, thereby, bringing in greater pace and intensity to transmission."

Here is the view of Mr. Siddhartha Sanyal, Chief Economist & Head of Research at Bandhan Bank:

“A 50-bps policy rate cut, a staggered 100 bps CRR cut and change of stance to neutral, RBI today's monetary policy communication was action packed - innovative, out of the box and an unanticipated surprise. The MPC has broadly addressed any concerns on slowdown in growth on account of global uncertainties and&nbsp; fully capitalized on the softening domestic inflation to deliver a frontloaded rate cut, staggered durable liquidity injection yet conserving the space for future action.The policy is definitely positive for all sectors of the economy, particularly for banking and finance. In particular lower cost of borrowing will act as a counterbalance to any uncertainty.”

Here is the view of Mr. C.S. Setty, Chairman at SBI & Chairman at IBA:

“The RBI has front-loaded everything and wants banks to react now. By changing the stance, I think they are trying to indicate no immediate rate cuts,” said Venkatakrishnan Srinivasan, managing partner at financial advisory firm Rockfort Fincap. “

Here is the view of Venkatakrishnan Srinivasan, Managing Partner at Rockfort Fincap:

“The ball is in the banks’ court to transmit easier financial conditions faster,” said Madhavi Arora, an economist at Emkay Global Financial Services Ltd.

Here is the view of Madhavi Arora, Economist at Emkay Global Financial Services Ltd.:

“The RBI’s decision to cut the repo rate by a sharper-than-expected 50 basis points to 5.5% reflects its strong intent to support economic growth amid rising global uncertainties and weak domestic demand. The cumulative 100 bps cut since February 2025, along with the phased 1% CRR reduction, will ease borrowing costs and improve liquidity in the system, potentially boosting credit flow. However, with the shift in stance from ‘accommodative’ to ‘neutral’, the central bank has signaled a pause, choosing to closely monitor inflation trends and global developments before taking further action.”

Here is the view of Mr. Amit Bivalkar, Founder Director, Sapient Finserv:

The&nbsp;RBI’s Monetary Policy Committee (MPC) exceeded expectations by slashing the Repo rate by 50 basis points. Further, the cash reserve ratio (CRR) was reduced by 100 basis points from 4% to 3% in a staggered manner, implemented in four equal tranches of 25 basis points each, in the fortnights beginning September 6, October 4, November 1, and November 29 to provide durable liquidity. The cut in CRR is expected to release primary liquidity of about Rs 2.5 lakh crore to the banking system by the end of November 2025.The RBI changed its stance from ‘accommodative’ to ‘neutral.’ The outlook for food inflation is soft, and the core inflation outlook remains benign. Given the benign&nbsp;inflation, the inflation forecast for the year has been revised downward from 4% to 3.7%. The FY26 GDP growth forecast is maintained at 6.5&nbsp;%. The risks are evenly balanced.

Here is the view of Dr. Manoranjan Sharma, Chief Economist at Infomerics Valuation and Ratings Ltd.:

“The RBI's decisive 50 bps repo rate cut to 5.5% and a 100 bps CRR reduction over four quarters unleash a powerful boost for India’s economy. By lowering borrowing costs and freeing up bank liquidity, sectors like real estate, automobiles, and consumer durables are set to thrive. With CPI inflation at 3.7% and FY26 GDP growth projected at 6.5%, fueled by steady rural demand and rising urban consumption, the USDINR forward rate at ~86.72 signals stability. This dual policy move will likely spur lending, investment, and job creation, despite global uncertainties. Now the RBI stance being neutral, all future RBI events for the next few quarters will be non-events.”

Here is the view of Dharan Shah, Founder, Tradonomy.AI:

“MPC frontloaded the rate cuts, reducing repo rates by 50 bps and also cut CRR by 100 bps. These measures came as a positive surprise to equity markets as there will be greater impetus to growth and there could be faster pick up in the interest rate sectors. Oddly, RBI also changed its stance from accommodative to neutral, thereby signaling that further softening of monetary conditions may not be easily forthcoming. Bond markets experienced some steepening with shorter end of the yield curve seeing some softening. It is complex messaging from RBI where they have eased the policy rates and liquidity but made no promises for the future”

Here is the view of Sandeep Bagla, CEO, TRUST Mutual Fund:

"The Reserve Bank of India has delivered a sharper-than-expected policy easing, cutting the repo rate by 50 basis points to 5.5% and slashing the Cash Reserve Ratio by 100 basis points to 3%. These aggressive rate cuts are providing strong support to Indian equity markets, while the CRR reduction is expected to inject approximately ₹2.5 lakh crore of liquidity into the banking system.In addition, the RBI has shifted its policy stance from 'accommodative' to 'neutral', signalling that interest rates are likely to remain stable in the near term, which is supporting the rupee and limiting any further depreciation."

Here’s what Amit Pabari, MD at CR Forex, says on RBI’s rate cuts

Indian stock markets surged after the Reserve Bank of India announced a larger-than-expected 50 basis point repo rate cut and a 100 basis point CRR reduction. The sensex jumped over 300 points in early trade, while the nifty rose more than 0.5 per cent.Investor sentiment was buoyed by the RBI’s decisive moves to boost liquidity and support growth, with analysts viewing the measures as a strong signal of the central bank’s commitment to navigating global economic uncertainty.

RBI MPC meeting LIVE Updates: Markets rally as RBI delivers jumbo rate cut

RBI Governor Sanjay Malhotra’s MPC address ends.

RBI MPC meeting LIVE Updates: Governor Malhotra address ends 

In a major move to enhance liquidity in the banking system, the Reserve Bank of India to reduce the Cash Reserve Ratio (CRR) by 100 basis points—from 4 per cent to 3 per cent.

RBI MPC meeting LIVE: RBI to reduce Cash Reserve Ratio by 100 bps to boost liquidity

Indian stock markets turned positive following the RBI’s announcement of a 50 basis point repo rate cut. The Sensex reversed early losses to rise over 50 points, while the Nifty also bounced back into the green after opening in the red. Investor sentiment improved on the back of supportive policy measures and a downward revision in the inflation forecast.

RBI MPC meeting LIVE: Markets rebound after RBI rate cut; Sensex, Nifty turn positive

RBI Governor Sanjay Malhotra announced that India’s real GDP growth for FY2025 is projected at 6.5 per cent, supported by steady rural demand and improving urban consumption. However, he flagged ongoing uncertainty in global trade, which continues to weigh on merchandise exports. On the inflation front, the RBI has revised its CPI inflation forecast for FY2025-26 downward to 3.7 per cent from the earlier estimate of 4.0 per cent, citing easing price pressures.

RBI projects FY25 GDP growth at 6.5%, lowers inflation forecast to 3.7%

The Reserve Bank of India has cut the repo rate by 50 basis points, bringing it down to 5.5%, marking the third consecutive rate cut aimed at boosting economic growth as global conditions remain fragile. Announcing the Monetary Policy Committee’s decision, RBI Governor Sanjay Malhotra said, “Inflation has softened in the last six months,” but added that the “last mile of inflation control remains protracted.” He also noted that the global economic backdrop continues to be uncertain, warranting a cautious but supportive policy stance.

RBI MPC meeting LIVE: RBI cuts repo rate by 50 bps to 5.5% amid global uncertainty

Amit Pabari, MD of CR Forex "The Reserve Bank of India is expected to deliver a third consecutive 25-bps rate cut, bringing the repo rate down to 5.75%. While this reflects the central bank’s continued focus on supporting growth, the dovish stance may weigh on the rupee in the near term. A narrowing interest rate differential between India and the U.S. could reduce the appeal of Indian assets for foreign investors, potentially triggering FII outflows and adding pressure on the currency."

RBI MPC meeting LIVE: Rupee at risk

The majority of analysts believe that the Reserve Bank of India (RBI) will reduce the repo rate by 25 basis points (bps) once again, however a study from the State Bank of India (SBI) predicts a massive rate decrease of 50 bps.Based on an evaluation by the RBI, most banks have lowered their repo-linked external benchmark-based lending rates (EBLRs) and the marginal cost of funds-based lending rate (MCLR) in reaction to the 50 basis points drop in the policy repo rate since February 2025. (PTI)

RBI Meeting Announcements LIVE Updates: SBI bets on a 50 bps cut

The Reserve Bank of India's Monetary Policy Committee (MPC) commenced its deliberation on June 4 which faces new headwinds from global trade uncertainties, particularly US tariff actions under US President Donald Trump.As the RBI wraps up its three-day monetary policy meeting today, all eyes are now on what could be the third straight interest rate cut of India. Expectations are high, with investors betting on a 0.25 per cent to 0.5 per cent reduction in rates. Read More <a href="https://www.wionews.com/business-economy/rbi-s-mpc-meeting-will-this-be-the-third-consecutive-rate-cut-1749183187400">https://www.wionews.com/business-economy/rbi-s-mpc-meeting-will-this-be-the-third-consecutive-rate-cut-1749183187400</a>

Curtain raiser: RBI decision time

Reserve Bank of India Governor Sanjay Malhotra will announce the Monetary Policy Committee’s (MPC) decision at 10 am today. The announcement will be live-streamed on the RBI’s official YouTube channel, X (formerly Twitter), and website. A press conference is expected around noon, also available on the same platforms. Stay tuned to WION for real-time updates.

RBI to reveal monetary policy decision at 10 am today

Indian stock markets opened lower today as investors remained cautious ahead of the Reserve Bank of India's policy decision. The BSE Sensex slipped over 75 points in early trade, while the NSE Nifty also opened in the red, dragged down by financial and tech stocks. Market participants are largely staying on the sidelines, awaiting cues from the central bank. The RBI is widely expected to cut the repo rate for the third consecutive time in a bid to support economic growth amid moderating inflation.

Markets open lower as investors await RBI policy decision

The RBI’s policy stance also reflects growing global risks. The ongoing US-China tariff war, tighter global financial conditions, and falling commodity prices are creating a challenging environment for trade and investment. Central banks worldwide — including the Federal Reserve, European Central Bank, and Bank of England — are tilting towards rate cuts to offset geopolitical shocks.By aligning its policy stance with global peers, the RBI is attempting to shield India’s growth engine from external volatility while maintaining price stability.

Global turbulence adds urgency to India’s monetary response

In April 2025, the RBI’s Monetary Policy Committee set the tone for an accommodative shift by trimming the repo rate by 25 basis points, moving it from 6.25 per cent to 6.00 per cent. It was the second back-to-back rate cut this year. More importantly, the policy stance was altered from ‘neutral’ to ‘accommodative’, signalling that the central bank was gearing up to prioritise growth as inflation stayed within comfortable limits.The decision then was unanimous, showcasing a clear consensus among committee members on the need for supportive monetary measures amid softening economic indicators.

Flashback to last rate cut: What happened in April MPC meet? 

If the RBI reduces the repo rate again today, borrowers are likely to benefit through lower EMIs on home, car, and personal loans. Banks typically adjust their marginal cost of lending rate (MCLR) in line with repo rate changes, passing on the benefit to customers — especially for floating-rate loans.On the flip side, deposit rates may also come down, meaning lower returns for savers and retirees. This dual effect makes today’s decision crucial for both households and investors alike.

What a rate cut means for your wallet?

The RBI’s monetary policy is determined by a six-member Monetary Policy Committee, comprising both RBI insiders and government-appointed economists. The current members are:• Sanjay Malhotra&nbsp;– Governor, RBI and MPC chairperson• Michael Patra&nbsp;– RBI Deputy Governor• Rajiv Ranjan&nbsp;– Executive Director, RBI• Ashima Goyal&nbsp;– Economist and professor• Shashanka Bhide&nbsp;– Senior advisor, NCAER• Rekha Jain&nbsp;– Former IIM Ahmedabad professor and telecom policy expertTogether, the team balances inflation targets, growth projections, and macroeconomic risks to decide the repo rate and overall policy stance.

Who decides India’s interest rates? Meet the MPC team

India’s economic data gives the central bank room to act. Consumer price inflation dropped to 3.34 per cent in March, comfortably below the RBI’s medium-term target of 4 per cent. Meanwhile, GDP growth for FY25 is projected at 6.3 per cent, down from 9.2 per cent in FY24, reflecting a significant slowdown in momentum.This “Goldilocks” scenario — slowing growth with benign inflation — strengthens the case for continued monetary easing. A rate cut today would aim to boost consumption, revive investment, and cushion the economy from external shocks.

What about Inflation and GDP expectations? 

Indian equities are likely to kick off the day on a quiet but watchful note, with early GIFT Nifty trends hinting at a flat opening around 24,845.On Thursday, however, markets closed higher in anticipation of a dovish stance from the RBI, with indices like the Nifty 50 rallying above 24,700. Investor focus remains on whether the central bank signals further easing after today. &nbsp;

Market reaction: Cautious start expected all eyes on RBI

As the countdown begins for the RBI’s policy statement, a broad market consensus has formed around another rate cut. According to a Reuters poll conducted between May 19 and 28, 53 of 61 economists believe the RBI will cut rates by 25 basis points. Two forecast a 50-basis point reduction, while six expect the central bank to hold rates steady.Fueling expectations of a deeper cut, SBI Research, in its pre-policy note titled “Prelude to MPC Meeting – June 4–6, 2025”, argued:“We expect a 50-basis point rate cut in June, as a jumbo rate cut could act as a counterbalance to uncertainty and support the credit cycle.”The note cited a combination of subdued domestic demand, global trade frictions, and decelerating investment as reasons for a stronger push from the central bank.

MPC decision day: Will RBI go big with a rate cut?

To unleash new money into the financial sector, the RBI also unexpectedly cut the Cash Reserve Ratio (CRR) by 100 basis points to 3%.

RBI MPC meeting LIVE Updates: The Reserve Bank of India delivered a powerful policy push this morning, announcing a 50 basis point cut in the repo rate—its third in a row—bringing it down to 5.5 per cent. In a surprise move, the RBI also slashed the Cash Reserve Ratio (CRR) by 100 basis points to 3 per cent, unleashing fresh liquidity into the banking system. RBI Governor Sanjay Malhotra said inflation has eased over the past six months, prompting the central bank to revise its FY26 CPI forecast down to 3.7 per cent from 4 per cent. Meanwhile, India’s GDP growth for FY2025 is projected at a solid 6.5 per cent, backed by steady rural demand and improving urban consumption. Markets cheered the announcements—Sensex and Nifty rebounded sharply, turning green after a weak start, as investors welcomed the growth-supportive stance.

The Reserve Bank of India announced a 50 basis point reduction in the repo rate this morning, its third consecutive decrease, bringing it down to 5.5%.&nbsp;

RBI MPC meeting HIGHLIGHTS : RBI MPC unanimously cuts repo rate by 50 basis points to 5.5%

In a bold move to stimulate economic growth and improve credit flow, the Reserve Bank of India (RBI) on June 6 announced a significant 100 basis point (bps) reduction in the Cash Reserve Ratio (CRR), slashing it from 4 per cent to 3 per cent.The cut, aimed at infusing durable liquidity into the banking system, will be implemented in four equal tranches of 25 bps each, beginning on September 6 and continuing through November 29, 2025.Announcing the decision at the end of the three-day Monetary Policy Committee (MPC) meeting, RBI Governor Sanjay Malhotra said the staggered CRR cut is expected to inject approximately ₹2.5 lakh crore ($29.16 billion) into the banking system by the end of the year.The governor emphasised that this step, alongside ongoing liquidity management operations, would reduce banks' cost of funds and improve monetary transmission to the credit markets.“The ball is in the banks’ court to transmit easier financial conditions faster,” said Madhavi Arora, an economist at Emkay Global Financial Services Ltd.In another major move, the MPC also decided to cut the benchmark repo rate by 50 bps to 5.50 per cent, marking the third straight rate cut in a row. The policy stance was revised from “accommodative” to “neutral”, signalling the central bank’s intent to shift toward a more balanced policy framework amid evolving economic conditions.<h2>What is CRR and why does it matter?</h2>The Cash Reserve Ratio (CRR) is a critical monetary policy tool used by the RBI to regulate liquidity and money supply in the economy. It mandates that commercial banks keep a certain percentage of their Net Demand and Time Liabilities (NDTL) as cash reserves with the central bank. This portion of funds, currently earning no interest, cannot be used for lending or investment purposes.By adjusting the CRR, the RBI influences the lending capacity of banks. A higher CRR restricts the funds available with banks for disbursing loans, while a lower CRR enhances their ability to lend, thereby impacting the overall liquidity in the financial system.“The reduction in CRR will provide durable liquidity and reduce the cost of funds for banks, which will aid the transmission of policy rate cuts,” Malhotra said, noting that the staggered implementation gives the banking system time to recalibrate their liquidity positions.<h2>CRR’s role in controlling inflation and boosting growth</h2>CRR is also a powerful tool for managing inflation. In periods of high inflation, the RBI may hike the CRR to absorb excess liquidity and curb overheating in the economy. Conversely, during times of sluggish growth or low inflation, the central bank often lowers CRR to push more funds into the system, encouraging banks to lend more and stimulate investment.The RBI's decision to reduce the CRR is a strategic move aimed at supporting the economy while the global outlook looks bleak.India’s inflation trajectory has been on a downward trend, with the central bank revising its inflation outlook to 3.7 per cent from 4 per cent earlier—well within the targeted range.With inflation pressures easing and the growth rate remaining below the 8-10 per cent needed to become a developed economy by 2047, the central bank appears to be front-loading monetary support.<h2>Liquidity picture and policy rationale</h2>The RBI has already infused ₹9.5 lakh crore ($11.08 billion) of durable liquidity into the banking system since January 2025. This sustained liquidity injection, coupled with the government’s month-end spending and the record ₹2.1 lakh crore ($21.50 billion) surplus transfer from the RBI to the government, has resulted in a significant surplus in system liquidity.This is reflected in the Weighted Average Call Rate (WACR)—the operating target of monetary policy—which has consistently traded at the lower end of the policy corridor. With system liquidity now exceeding ₹3 lakh crore ($34.9 billion) (1.3 per cent of NDTL), market participants have noted a tepid response to the RBI’s Variable Rate Repo (VRR) auctions, and there is growing speculation that the central bank may scale back its daily VRR operations.Governor Malhotra reaffirmed the RBI’s commitment to maintaining orderly liquidity conditions. “We will continue to monitor evolving liquidity and financial market conditions and take further measures as warranted,” he stated.<h2>Impact and outlook</h2>The CRR cut is expected to have a multi-dimensional impact. Firstly, it enhances the dispensable resources with banks, encouraging them to increase lending to businesses and consumers.Secondly, the move will ease funding costs for banks, supporting better transmission of the repo rate cut into lower interest rates across the spectrum.Economists believe this could spur investment and consumption at a time when global economic headwinds and weak private sector capital expenditure remain concerns. Lower lending rates may also provide relief to interest-sensitive sectors such as housing, automobiles, and MSMEs (micro, small and medium enterprises).However, analysts caution that the transmission of lower policy rates to end-borrowers often takes time.So, the RBI’s aggressive dual action—a sizable CRR cut combined with a sharp repo rate reduction—underscores its intent to boost growth without compromising financial stability. With inflation under control and ample liquidity in the system, the central bank has created room for a calibrated push toward stronger economic momentum.

RBI Governor Sanjay Malhotra said the staggered CRR cut is expected to inject approximately ₹2.5 lakh crore into the banking system by the end of the year.

In a bold move to stimulate economic growth and improve credit flow, the Reserve Bank of India (RBI) on June 6 announced a significant 100 basis point (bps) reduction in the Cash Reserve Ratio (CRR), slashing it from 4 per cent to 3 per cent. The cut, aimed at infusing durable liquidity into the banking system, will be implemented in four equal tranches of 25 bps each, beginning on September 6 and continuing through November 29, 2025. Announcing the decision at the end of the three-day Monetary Policy Committee (MPC) meeting, RBI Governor Sanjay Malhotra said the staggered CRR cut is expected to inject approximately ₹2.5 lakh crore ($29.16 billion) into the banking system by the end of the year. The governor emphasised that this step, alongside ongoing liquidity management operations, would reduce banks' cost of funds and improve monetary transmission to the credit markets. “The ball is in the banks’ court to transmit easier financial conditions faster,” said Madhavi Arora, an economist at Emkay Global Financial Services Ltd. In another major move, the MPC also decided to cut the benchmark repo rate by 50 bps to 5.50 per cent, marking the third straight rate cut in a row. The policy stance was revised from “accommodative” to “neutral”, signalling the central bank’s intent to shift toward a more balanced policy framework amid evolving economic conditions. What is CRR and why does it matter? The Cash Reserve Ratio (CRR) is a critical monetary policy tool used by the RBI to regulate liquidity and money supply in the economy. It mandates that commercial banks keep a certain percentage of their Net Demand and Time Liabilities (NDTL) as cash reserves with the central bank. This portion of funds, currently earning no interest, cannot be used for lending or investment purposes. By adjusting the CRR, the RBI influences the lending capacity of banks. A higher CRR restricts the funds available with banks for disbursing loans, while a lower CRR enhances their ability to lend, thereby impacting the overall liquidity in the financial system. “The reduction in CRR will provide durable liquidity and reduce the cost of funds for banks, which will aid the transmission of policy rate cuts,” Malhotra said, noting that the staggered implementation gives the banking system time to recalibrate their liquidity positions. CRR’s role in controlling inflation and boosting growth CRR is also a powerful tool for managing inflation. In periods of high inflation, the RBI may hike the CRR to absorb excess liquidity and curb overheating in the economy. Conversely, during times of sluggish growth or low inflation, the central bank often lowers CRR to push more funds into the system, encouraging banks to lend more and stimulate investment. The RBI's decision to reduce the CRR is a strategic move aimed at supporting the economy while the global outlook looks bleak. India’s inflation trajectory has been on a downward trend, with the central bank revising its inflation outlook to 3.7 per cent from 4 per cent earlier—well within the targeted range. With inflation pressures easing and the growth rate remaining below the 8-10 per cent needed to become a developed economy by 2047, the central bank appears to be front-loading monetary support. Liquidity picture and policy rationale The RBI has already infused ₹9.5 lakh crore ($11.08 billion) of durable liquidity into the banking system since January 2025. This sustained liquidity injection, coupled with the government’s month-end spending and the record ₹2.1 lakh crore ($21.50 billion) surplus transfer from the RBI to the government, has resulted in a significant surplus in system liquidity. This is reflected in the Weighted Average Call Rate (WACR)—the operating target of monetary policy—which has consistently traded at the lower end of the policy corridor. With system liquidity now exceeding ₹3 lakh crore ($34.9 billion) (1.3 per cent of NDTL), market participants have noted a tepid response to the RBI’s Variable Rate Repo (VRR) auctions, and there is growing speculation that the central bank may scale back its daily VRR operations. Governor Malhotra reaffirmed the RBI’s commitment to maintaining orderly liquidity conditions. “We will continue to monitor evolving liquidity and financial market conditions and take further measures as warranted,” he stated. Impact and outlook The CRR cut is expected to have a multi-dimensional impact. Firstly, it enhances the dispensable resources with banks, encouraging them to increase lending to businesses and consumers. Secondly, the move will ease funding costs for banks, supporting better transmission of the repo rate cut into lower interest rates across the spectrum. Economists believe this could spur investment and consumption at a time when global economic headwinds and weak private sector capital expenditure remain concerns. Lower lending rates may also provide relief to interest-sensitive sectors such as housing, automobiles, and MSMEs (micro, small and medium enterprises). However, analysts caution that the transmission of lower policy rates to end-borrowers often takes time. So, the RBI’s aggressive dual action—a sizable CRR cut combined with a sharp repo rate reduction—underscores its intent to boost growth without compromising financial stability. With inflation under control and ample liquidity in the system, the central bank has created room for a calibrated push toward stronger economic momentum.

RBI Governor Sanjay Malhotra said the staggered CRR cut is expected to inject approximately ₹2.5 lakh crore into the banking system by the end of the year.

RBI to slash cash reserve ratio: What it means for banks, borrowers, and inflation?

In a bold move to revive growth and ease financing conditions, the Reserve Bank of India (RBI), during its Monetary Policy Committee (MPC) meeting on June 6, 2025, announced a series of pro-growth measures.&nbsp;&nbsp;These include another repo rate cut, a phased CRR reduction, and a downward revision in the inflation forecast. The policy signals a continued effort by the central bank to support the economy amid a favourable inflation outlook and improving macroeconomic conditions. &nbsp;Here are the key announcements explained in detail:<h2>1. Repo rate cut by 50 basis points to 5.5%&nbsp;</h2>The RBI slashed the repo rate by 50 basis points, bringing it down to 5.5 per cent. This marks the third consecutive repo rate cut in 2025, following a 25-basis point cut in February, and another 25-basis point reduction in April.&nbsp; &nbsp;The cumulative rate cut now stands at 100 basis points for the calendar year.&nbsp;The repo rate is the rate at which the RBI lends to commercial banks. Lowering this rate makes loans cheaper, potentially boosting credit demand from consumers and corporates. With this aggressive rate action, the RBI aims to energise investment and spending across key sectors of the economy.<h2>2. CRR to be reduced by 100 basis points in four stages</h2>In a major liquidity-boosting measure, the RBI also announced a 100-basis point cut in the Cash Reserve Ratio (CRR) — from 4 per cent to 3 per cent. The CRR is the minimum percentage of a bank’s total deposits that must be held in reserve with the central bank. &nbsp;This reduction will be implemented in four tranches — on September 6, October 4, November 1, and November 29.&nbsp; &nbsp;According to the RBI, this move will inject nearly ₹2.5 lakh crore into the banking system, enhancing liquidity and supporting stronger credit growth.&nbsp;<h2>3. Inflation forecast for FY26 lowered to 3.7%</h2>The RBI revised down its inflation forecast for FY26 to 3.7 per cent, from its earlier estimate of 4 per cent. This signals that the central bank sees price pressures easing in the coming months.&nbsp;According to Governor Malhotra, factors such as record wheat production, higher output of pulses, and a moderation in global commodity prices are expected to help keep inflation in check. However, he cautioned that the RBI remains watchful of weather-related risks that could affect food prices.&nbsp;Here’s the revised quarterly CPI outlook:• Q1: 2.9 per cent• Q2: 3.4 per cent• Q3: 3.9 per cent• Q4: 4.4 per cent<h2>4. GDP growth forecast retained at 6.5% for FY26</h2>Despite the rate cuts and liquidity measures, the RBI chose to keep its GDP growth projection unchanged at 6.5 per cent for FY26, reflecting confidence in the resilience of the Indian economy.&nbsp;Growth is expected to be driven by reviving investment activity, steady rural demand, and above-normal monsoon forecasts. However, the central bank also highlighted downside risks from global trade tensions, weather uncertainties, and slower foreign inflows.Here are quarter-wise GDP estimates:• Q1: 6.5 per cent• Q2: 6.7 per cent• Q3: 6.6 per cent• Q4: 6.3 per cent<h2>5. Policy stance shifts from ‘accommodative’ to ‘neutral’</h2>In a notable shift, the MPC voted to change its policy stance from ‘accommodative’ to ‘neutral’, marking the end of an ultra-easy monetary phase. This means the central bank will now make future rate decisions based on evolving data, rather than being biased toward further cuts.&nbsp;While the RBI remains supportive of growth, it has also signalled readiness to respond quickly to any resurgence in inflation or external shocks.<h2>6. Sector-specific insights: lending stress eases, forex reserves strong</h2>Governor Malhotra noted that stress in unsecured loans and credit card segments has eased, although microfinance loans remain under pressure. On the external front, India’s merchandise and services exports are holding up well despite global headwinds.&nbsp; &nbsp;The current account deficit (CAD) for FY26 is projected to remain within sustainable levels, supported by resilient remittance inflows and a strong forex reserve position of $691.5 billion as of May-end.&nbsp;The June 2025 policy signals a strong push to accelerate India’s growth cycle, supported by lower rates and higher liquidity.&nbsp;&nbsp;At the same time, the RBI has shown prudence by adopting a neutral stance, reflecting its intent to remain flexible in a fluid global environment. &nbsp;

RBI unveils pro-growth measures including a repo rate cut and CRR reduction during its June 2025 MPC meet, aiming to support economic recovery.


In a bold move to revive growth and ease financing conditions, the Reserve Bank of India (RBI), during its Monetary Policy Committee (MPC) meeting on June 6, 2025, announced a series of pro-growth measures. These include another repo rate cut, a phased CRR reduction, and a downward revision in the inflation forecast. The policy signals a continued effort by the central bank to support the economy amid a favourable inflation outlook and improving macroeconomic conditions. Here are the key announcements explained in detail: 1. Repo rate cut by 50 basis points to 5.5% The RBI slashed the repo rate by 50 basis points, bringing it down to 5.5 per cent. This marks the third consecutive repo rate cut in 2025, following a 25-basis point cut in February, and another 25-basis point reduction in April. The cumulative rate cut now stands at 100 basis points for the calendar year. The repo rate is the rate at which the RBI lends to commercial banks. Lowering this rate makes loans cheaper, potentially boosting credit demand from consumers and corporates. With this aggressive rate action, the RBI aims to energise investment and spending across key sectors of the economy. 2. CRR to be reduced by 100 basis points in four stages In a major liquidity-boosting measure, the RBI also announced a 100-basis point cut in the Cash Reserve Ratio (CRR) — from 4 per cent to 3 per cent. The CRR is the minimum percentage of a bank’s total deposits that must be held in reserve with the central bank. This reduction will be implemented in four tranches — on September 6, October 4, November 1, and November 29. According to the RBI, this move will inject nearly ₹2.5 lakh crore into the banking system, enhancing liquidity and supporting stronger credit growth. 3. Inflation forecast for FY26 lowered to 3.7% The RBI revised down its inflation forecast for FY26 to 3.7 per cent, from its earlier estimate of 4 per cent. This signals that the central bank sees price pressures easing in the coming months. According to Governor Malhotra, factors such as record wheat production, higher output of pulses, and a moderation in global commodity prices are expected to help keep inflation in check. However, he cautioned that the RBI remains watchful of weather-related risks that could affect food prices. Here’s the revised quarterly CPI outlook: • Q1: 2.9 per cent • Q2: 3.4 per cent • Q3: 3.9 per cent • Q4: 4.4 per cent 4. GDP growth forecast retained at 6.5% for FY26 Despite the rate cuts and liquidity measures, the RBI chose to keep its GDP growth projection unchanged at 6.5 per cent for FY26, reflecting confidence in the resilience of the Indian economy. Growth is expected to be driven by reviving investment activity, steady rural demand, and above-normal monsoon forecasts. However, the central bank also highlighted downside risks from global trade tensions, weather uncertainties, and slower foreign inflows. Here are quarter-wise GDP estimates: • Q1: 6.5 per cent • Q2: 6.7 per cent • Q3: 6.6 per cent • Q4: 6.3 per cent 5. Policy stance shifts from ‘accommodative’ to ‘neutral’ In a notable shift, the MPC voted to change its policy stance from ‘accommodative’ to ‘neutral’, marking the end of an ultra-easy monetary phase. This means the central bank will now make future rate decisions based on evolving data, rather than being biased toward further cuts. While the RBI remains supportive of growth, it has also signalled readiness to respond quickly to any resurgence in inflation or external shocks. 6. Sector-specific insights: lending stress eases, forex reserves strong Governor Malhotra noted that stress in unsecured loans and credit card segments has eased, although microfinance loans remain under pressure. On the external front, India’s merchandise and services exports are holding up well despite global headwinds. The current account deficit (CAD) for FY26 is projected to remain within sustainable levels, supported by resilient remittance inflows and a strong forex reserve position of $691.5 billion as of May-end. The June 2025 policy signals a strong push to accelerate India’s growth cycle, supported by lower rates and higher liquidity. At the same time, the RBI has shown prudence by adopting a neutral stance, reflecting its intent to remain flexible in a fluid global environment.

RBI announces a repo rate cut, CRR reduction, and lower inflation forecast to boost growth and liquidity.

RBI MPC meeting: Here are the key highlights from the central bank’s June 2025 policy review

In a significant move aimed at bolstering growth amid a benign inflation outlook, the Reserve Bank of India (RBI) on June 6 slashed the repo rate by 50 basis points (bps) to 5.50 per cent from 6 per cent.This marks the third consecutive rate cut by the RBI’s Monetary Policy Committee (MPC), bringing the cumulative reduction to 100 bps since February 2025. The central bank also announced a shift in its policy stance from ‘accommodative’ to ‘neutral’.RBI Governor Sanjay Malhotra said the front-loaded rate cut was necessitated by a clear moderation in inflation and persistent global uncertainties impacting domestic growth.He noted that “inflation has softened significantly over the last six months”, with the latest Consumer Price Index (CPI) reading at 3.2 per cent, well below RBI’s 4 per cent target.&nbsp;“The near-term and medium-term outlook gives us confidence of a durable alignment of inflation with the target. It may even undershoot the margin,” Malhotra said.<h2>GDP growth forecast unchanged</h2>Despite the rate cut, the RBI maintained its FY26 GDP growth forecast at 6.5 per cent, citing resilience in domestic activity. Private consumption remains healthy, and both the services and agriculture sectors are expected to sustain momentum.RBI also kept the quarterly projections unchanged at 6.5 per cent for Q1, 6.7 per cent for Q2, 6.6 per cent for Q3 and 6.3 per cent for Q4.This is in comparison with Moody’s Ratings’ Indian economic growth projection between 5.5 per cent to 6.5 per cent and the IMF’s projection of 6.2 per cent for the calendar year 2025.Malhotra noted strong performance in merchandise exports in April and a revival in investment activity. He acknowledged that while rural demand is steady, urban demand is showing signs of further improvement.<h2>Inflation outlook revised downward</h2>The RBI has sharply revised its FY26 inflation projection down to 3.7 per cent rom the previous estimate of 4 per cent. According to the governor, food prices have eased and core inflation remains subdued.Quarterly inflation forecasts have also been moderated:Q1 FY26: 2.9 per cent (down from 3.6 per cent)Q2 FY26: 3.4 per cent (down from 3.9 per cent)Q3 FY26: 3.9 per cent (unchanged)Q4 FY26: 4.4 per cent (unchanged)The RBI attributed the outlook to a likely above-normal monsoon, record wheat production, and easing global commodity prices.However, he also warned of risks from weather uncertainties and volatile global trade conditions.<h2>CRR cut to inject liquidity</h2>In a surprise move, the RBI also announced a 100 bps cut in the Cash Reserve Ratio (CRR) to 3 per cent, which will release ₹2.5 lakh crore ($291 billion) of primary liquidity into the system.This reduction in CRR will be done in four tranches. The step is expected to reduce the cost of funds for banks and support more effective transmission of monetary policy.“This CRR cut will not only augment durable liquidity but also improve funding conditions for businesses and consumers alike,” Malhotra said.While the RBI's tone was broadly optimistic, it flagged multiple risks, including fragile global trade, rising geopolitical tensions, and uncertainties related to AI-driven disruptions in financial markets. Malhotra emphasised the need for constant vigilance and data-driven decision-making.“We have very limited space left for further monetary accommodation. From here, every move will depend on incoming data and evolving macroeconomic realities,” he added.Indian stock markets welcomed the announcement, with benchmark indices the Sensex and the Nifty 50 both rising nearly 0.7% at 11:00 am IST.

RBI Governor Sanjay Malhotra said the front-loaded rate cut was necessitated by a clear moderation in inflation and persistent global uncertainties impacting domestic growth.

In a significant move aimed at bolstering growth amid a benign inflation outlook, the Reserve Bank of India (RBI) on June 6 slashed the repo rate by 50 basis points (bps) to 5.50 per cent from 6 per cent. This marks the third consecutive rate cut by the RBI’s Monetary Policy Committee (MPC), bringing the cumulative reduction to 100 bps since February 2025. The central bank also announced a shift in its policy stance from ‘accommodative’ to ‘neutral’. RBI Governor Sanjay Malhotra said the front-loaded rate cut was necessitated by a clear moderation in inflation and persistent global uncertainties impacting domestic growth. He noted that “inflation has softened significantly over the last six months”, with the latest Consumer Price Index (CPI) reading at 3.2 per cent, well below RBI’s 4 per cent target. “The near-term and medium-term outlook gives us confidence of a durable alignment of inflation with the target. It may even undershoot the margin,” Malhotra said. GDP growth forecast unchanged Despite the rate cut, the RBI maintained its FY26 GDP growth forecast at 6.5 per cent, citing resilience in domestic activity. Private consumption remains healthy, and both the services and agriculture sectors are expected to sustain momentum. RBI also kept the quarterly projections unchanged at 6.5 per cent for Q1, 6.7 per cent for Q2, 6.6 per cent for Q3 and 6.3 per cent for Q4. This is in comparison with Moody’s Ratings’ Indian economic growth projection between 5.5 per cent to 6.5 per cent and the IMF’s projection of 6.2 per cent for the calendar year 2025. Malhotra noted strong performance in merchandise exports in April and a revival in investment activity. He acknowledged that while rural demand is steady, urban demand is showing signs of further improvement. Inflation outlook revised downward The RBI has sharply revised its FY26 inflation projection down to 3.7 per cent rom the previous estimate of 4 per cent. According to the governor, food prices have eased and core inflation remains subdued. Quarterly inflation forecasts have also been moderated: Q1 FY26: 2.9 per cent (down from 3.6 per cent) Q2 FY26: 3.4 per cent (down from 3.9 per cent) Q3 FY26: 3.9 per cent (unchanged) Q4 FY26: 4.4 per cent (unchanged) The RBI attributed the outlook to a likely above-normal monsoon, record wheat production, and easing global commodity prices. However, he also warned of risks from weather uncertainties and volatile global trade conditions. CRR cut to inject liquidity In a surprise move, the RBI also announced a 100 bps cut in the Cash Reserve Ratio (CRR) to 3 per cent, which will release ₹2.5 lakh crore ($291 billion) of primary liquidity into the system. This reduction in CRR will be done in four tranches. The step is expected to reduce the cost of funds for banks and support more effective transmission of monetary policy. “This CRR cut will not only augment durable liquidity but also improve funding conditions for businesses and consumers alike,” Malhotra said. While the RBI's tone was broadly optimistic, it flagged multiple risks, including fragile global trade, rising geopolitical tensions, and uncertainties related to AI-driven disruptions in financial markets. Malhotra emphasised the need for constant vigilance and data-driven decision-making. “We have very limited space left for further monetary accommodation. From here, every move will depend on incoming data and evolving macroeconomic realities,” he added. Indian stock markets welcomed the announcement, with benchmark indices the Sensex and the Nifty 50 both rising nearly 0.7% at 11:00 am IST.

RBI Governor Sanjay Malhotra said the front-loaded rate cut was necessitated by a clear moderation in inflation and persistent global uncertainties impacting domestic growth.

Rate cut hat-trick: RBI goes big with 0.5% cut, stance turns neutral

The European Central Bank (ECB) has cut its key interest rates by 25 basis points, marking a pivotal moment in its monetary policy cycle and offering relief to businesses and households amid persistent geopolitical uncertainty.&nbsp;The widely anticipated decision, announced on June 5, brings the ECB’s deposit facility rate down to 2 per cent, the main refinancing operations rate to 2.15 per cent, and the marginal lending facility to 2.40 per cent, effective June 11, 2025.European markets reacted positively. The pan-European Stoxx 600 index rose 0.9 per cent, while bond yields across the eurozone fell, reflecting investor confidence in looser monetary conditions.&nbsp;The euro gained 0.6 per cent against the dollar after ECB President Christine Lagarde’s remarks suggested the central bank may be nearing the end of its rate-cutting cycle.<h2>Markets react positively to rate cut</h2>Bond markets rallied following the ECB’s announcement. Yields on benchmark 10-year government bonds fell across major eurozone economies. German yields dropped 4 basis points, while France, Spain, and Italy saw yields decline by 3 to 5 basis points. As bond yields move inversely to prices, the drop indicated growing demand from investors anticipating a dovish rate environment.Stock markets were also buoyant. Germany’s DAX rose 0.2 per cent, the UK’s FTSE 100 edged up 0.1 per cent, and the Stoxx Europe 600 closed higher by 0.9 per cent. France’s CAC 40 was the lone major index to close slightly down, falling 0.2 per cent.ECB cites cooling Inflation, stronger euroIn its policy statement, the ECB said the decision to lower rates was driven by updated inflation projections and improved monetary policy transmission.&nbsp;Headline inflation has cooled to 1.9 per cent in May, slightly below the ECB’s 2 per cent medium-term target, prompting the revision.Revised projections show inflation averaging 2.0 per cent in 2025, down from 2.3 per cent forecast in March, with a further decline to 1.6 per cent in 2026.&nbsp;The central bank attributed the downgrades to lower energy prices and a stronger euro. Core inflation (excluding food and energy) is expected to remain elevated at 2.4 per cent in 2025, but fall to 1.9 per cent by 2027.“We are in a good place,” Lagarde told reporters, though she emphasised the path ahead remains data-dependent and shrouded in uncertainty. One Governing Council member opposed the cut, underlining internal divisions as policymakers weigh global risks.<h2>Trade tensions cloud growth outlook</h2>The ECB also left its GDP growth forecast for 2025 unchanged at 0.9 per cent, acknowledging a robust first quarter but warning of weaker prospects ahead due to trade disruptions.&nbsp;Tensions with the US have escalated following President Donald Trump’s tariffs on European goods, starting at 20 per cent and potentially rising to 50 per cent. Although both sides have agreed to pause retaliatory measures until July 14 to allow negotiations, concerns remain.A further escalation could drag both growth and inflation below baseline projections, the ECB warned. However, a benign resolution could offer modest upside.“Uncertainty surrounding trade policies is expected to weigh on business investment and exports, especially in the short term,” the bank noted in a statement. Yet rising public spending—particularly on defence and infrastructure—and strong labour markets are seen as buffers against global shocks.<h2>Rate path ahead</h2>Despite delivering its eighth rate cut since mid-2023, the ECB signalled a cautious stance going forward. Lagarde made clear that the central bank is not pre-committing to a specific rate trajectory, reinforcing a “meeting-by-meeting” approach based on evolving data. However, the president did indicate that ECB is “nearing the end” of its rate-cutting cycle.Analysts remain divided on future moves. While some argue that the ECB should pause to assess the impact of the cuts so far, others believe there is room for further easing if inflation continues to fall and growth weakens.Lagarde also dismissed speculation about her departure from the ECB to join the World Economic Forum, affirming, “I am determined to complete my term. Period.”

The widely anticipated decision, announced on June 5, brings the ECB’s deposit facility rate down to 2 per cent, the main refinancing operations rate to 2.15 per cent, and the marginal lending facility to 2.40 per cent, effective June 11, 2025.

The European Central Bank (ECB) has cut its key interest rates by 25 basis points, marking a pivotal moment in its monetary policy cycle and offering relief to businesses and households amid persistent geopolitical uncertainty. The widely anticipated decision, announced on June 5, brings the ECB’s deposit facility rate down to 2 per cent, the main refinancing operations rate to 2.15 per cent, and the marginal lending facility to 2.40 per cent, effective June 11, 2025. European markets reacted positively. The pan-European Stoxx 600 index rose 0.9 per cent, while bond yields across the eurozone fell, reflecting investor confidence in looser monetary conditions. The euro gained 0.6 per cent against the dollar after ECB President Christine Lagarde’s remarks suggested the central bank may be nearing the end of its rate-cutting cycle. Markets react positively to rate cut Bond markets rallied following the ECB’s announcement. Yields on benchmark 10-year government bonds fell across major eurozone economies. German yields dropped 4 basis points, while France, Spain, and Italy saw yields decline by 3 to 5 basis points. As bond yields move inversely to prices, the drop indicated growing demand from investors anticipating a dovish rate environment. Stock markets were also buoyant. Germany’s DAX rose 0.2 per cent, the UK’s FTSE 100 edged up 0.1 per cent, and the Stoxx Europe 600 closed higher by 0.9 per cent. France’s CAC 40 was the lone major index to close slightly down, falling 0.2 per cent. ECB cites cooling Inflation, stronger euro In its policy statement, the ECB said the decision to lower rates was driven by updated inflation projections and improved monetary policy transmission. Headline inflation has cooled to 1.9 per cent in May, slightly below the ECB’s 2 per cent medium-term target, prompting the revision. Revised projections show inflation averaging 2.0 per cent in 2025, down from 2.3 per cent forecast in March, with a further decline to 1.6 per cent in 2026. The central bank attributed the downgrades to lower energy prices and a stronger euro. Core inflation (excluding food and energy) is expected to remain elevated at 2.4 per cent in 2025, but fall to 1.9 per cent by 2027. “We are in a good place,” Lagarde told reporters, though she emphasised the path ahead remains data-dependent and shrouded in uncertainty. One Governing Council member opposed the cut, underlining internal divisions as policymakers weigh global risks. Trade tensions cloud growth outlook The ECB also left its GDP growth forecast for 2025 unchanged at 0.9 per cent, acknowledging a robust first quarter but warning of weaker prospects ahead due to trade disruptions. Tensions with the US have escalated following President Donald Trump’s tariffs on European goods, starting at 20 per cent and potentially rising to 50 per cent. Although both sides have agreed to pause retaliatory measures until July 14 to allow negotiations, concerns remain. A further escalation could drag both growth and inflation below baseline projections, the ECB warned. However, a benign resolution could offer modest upside. “Uncertainty surrounding trade policies is expected to weigh on business investment and exports, especially in the short term,” the bank noted in a statement. Yet rising public spending—particularly on defence and infrastructure—and strong labour markets are seen as buffers against global shocks. Rate path ahead Despite delivering its eighth rate cut since mid-2023, the ECB signalled a cautious stance going forward. Lagarde made clear that the central bank is not pre-committing to a specific rate trajectory, reinforcing a “meeting-by-meeting” approach based on evolving data. However, the president did indicate that ECB is “nearing the end” of its rate-cutting cycle. Analysts remain divided on future moves. While some argue that the ECB should pause to assess the impact of the cuts so far, others believe there is room for further easing if inflation continues to fall and growth weakens. Lagarde also dismissed speculation about her departure from the ECB to join the World Economic Forum, affirming, “I am determined to complete my term. Period.”

The widely anticipated decision, announced on June 5, brings the ECB’s deposit facility rate down to 2 per cent, the main refinancing operations rate to 2.15 per cent, and the marginal lending facility to 2.40 per cent, effective June 11, 2025.

ECB cuts rates by 25 basis points as inflation cools, trade tensions loom

The Reserve Bank of India's Monetary Policy Committee (MPC) commenced its deliberation on June 4 which faces new headwinds from global trade uncertainties, particularly US tariff actions under US President Donald Trump.&nbsp;As the RBI wraps up its three-day monetary policy meeting today, all eyes are now on what could be the third straight interest rate cut of India. Expectations are high, with investors betting on a 0.25 per cent to 0.5 per cent reduction in rates.&nbsp;Currently, India’s benchmark rate stands at 6 per cent, and a cut could make borrowing cheaper across the board, giving a boost to consumption, financials, and real estate stocks.&nbsp;In April 2025, the central bank changed its stance from ‘neutral’ to ‘accommodative.’&nbsp; Delivering his speech after the April MPC meet, RBI Governor Sanjay Malhotra said that RBI’s stance provides policy rate guidance, without any direct guidance on liquidity management.&nbsp;Inflation has cooled in recent months and now sits comfortably below the RBI’s 4 per cent target, giving the central bank room to ease.&nbsp;Economists expect that the central bank is unlikely to change its growth projections, considering the risks amid trade and geopolitical uncertainties. While India, one of the fastest-growing major economies, stands tall in a slowing global landscape, some believe there will be a downward revision of RBI's projection.&nbsp;During the April policy review, Malhotra had revised India's growth for FY26 to 6.5 per cent, down from 6.7 per cent announced in the February meeting.&nbsp;Malhotra is expected to address the media shortly, shedding light on economic growth, inflation, and the challenges ahead amid looming uncertainties.&nbsp;Market expectations&nbsp;The Indian benchmark indices, The BSE Sensex and the Nifty 50, are likely to kick off the day on a quiet but watchful note on June 6 amid mixed global market cues and ahead of the RBI policy today.&nbsp;The trends on Gift Nifty also indicate a tepid start for the Indian benchmark index as it opens flat around 24,845, a discount of nearly 20 points from the Nifty futures’ previous close.&nbsp;On June 5, the domestic equity market indices ended more than 0.5 per cent higher each, with the benchmark Nifty 50 closing above 24,700 level. While the Sensex gained 443.79 points to close at 81,442.04.&nbsp;Global investors are watching closely, and with just hours to go for the announcement, markets remain on edge. Stay tuned—we’re tracking every development for you.

India’s benchmark rate stands at 6 per cent, and a cut could make borrowing cheaper across the board, giving a boost to consumption, financials, and real estate stocks.

The Reserve Bank of India's Monetary Policy Committee (MPC) commenced its deliberation on June 4 which faces new headwinds from global trade uncertainties, particularly US tariff actions under US President Donald Trump. As the RBI wraps up its three-day monetary policy meeting today, all eyes are now on what could be the third straight interest rate cut of India. Expectations are high, with investors betting on a 0.25 per cent to 0.5 per cent reduction in rates. Currently, India’s benchmark rate stands at 6 per cent, and a cut could make borrowing cheaper across the board, giving a boost to consumption, financials, and real estate stocks. In April 2025, the central bank changed its stance from ‘neutral’ to ‘accommodative.’ Delivering his speech after the April MPC meet, RBI Governor Sanjay Malhotra said that RBI’s stance provides policy rate guidance, without any direct guidance on liquidity management. Inflation has cooled in recent months and now sits comfortably below the RBI’s 4 per cent target, giving the central bank room to ease. Economists expect that the central bank is unlikely to change its growth projections, considering the risks amid trade and geopolitical uncertainties. While India, one of the fastest-growing major economies, stands tall in a slowing global landscape, some believe there will be a downward revision of RBI's projection. During the April policy review, Malhotra had revised India's growth for FY26 to 6.5 per cent, down from 6.7 per cent announced in the February meeting. Malhotra is expected to address the media shortly, shedding light on economic growth, inflation, and the challenges ahead amid looming uncertainties. Market expectations The Indian benchmark indices, The BSE Sensex and the Nifty 50, are likely to kick off the day on a quiet but watchful note on June 6 amid mixed global market cues and ahead of the RBI policy today. The trends on Gift Nifty also indicate a tepid start for the Indian benchmark index as it opens flat around 24,845, a discount of nearly 20 points from the Nifty futures’ previous close. On June 5, the domestic equity market indices ended more than 0.5 per cent higher each, with the benchmark Nifty 50 closing above 24,700 level. While the Sensex gained 443.79 points to close at 81,442.04. Global investors are watching closely, and with just hours to go for the announcement, markets remain on edge. Stay tuned—we’re tracking every development for you.

India’s benchmark rate stands at 6 per cent, and a cut could make borrowing cheaper across the board, giving a boost to consumption, financials, and real estate stocks.

RBI’s MPC meeting: Will this be the third consecutive rate cut?

India's popular unified payments interface (UPI) is emerging as a global powerhouse. UPI transactions have seen a significant surge since their inception during COVID. In this article, we dive into the numbers and decode how UPI is now poised to overtake Visa in daily transaction volume.India's popular and home-grown cutting-edge fintech, UPI, is fast becoming the top choice for digital retail payments. In terms of the value of transactions, UPI is already way ahead.<h2>India's UPI surge nears a new milestone</h2>The value of UPI transactions last month crossed 25 lakh crore rupees, 12 times that of all card transaction value. In terms of daily transaction volume, UPI is set to surpass that of global payments behemoth Visa soon. That will make UPI the world's largest retail interbank payment settlement network. In terms of volumes, Visa does not share daily transaction details. Still, looking at the figures available, UPI is fast closing in on transaction volumes through card networks. On June 1 and 2, UPI reported 644 million and 650 million transactions, respectively. That is just above the visa's FY-24 global daily average of 639 million. The number of daily transactions reported by UPI increased from 630 million in early May to about 650 million in just the first two days of June. UPI experiences a 5-7 per cent month-on-month rise and a 40 per cent yearly growth. That is driven by an increase in internet penetration and more individuals embracing digital payments. Transactions processed by Visa are increasing at a rate of 10 per cent each year. The current upward trend suggests that, over the next two or three months, UPI will have more daily average transactions than Visa. The new milestone will make it even more remarkable because of the difference in the payment settlement methodology of card networks and the UPI. UPI's payment settlement approach is real-time, while card networks like Visa and Mastercard use deferred settlement methodology. UPI facilitates almost 85 per cent of all digital payments in the country. Not surprisingly, an RBI report showed India now accounts for nearly half of all real-time payment transactions.

The value of UPI transactions last month crossed 25 lakh crore rupees, 12 times that of all card transaction value.

India's popular unified payments interface (UPI) is emerging as a global powerhouse. UPI transactions have seen a significant surge since their inception during COVID. In this article, we dive into the numbers and decode how UPI is now poised to overtake Visa in daily transaction volume. India's popular and home-grown cutting-edge fintech, UPI, is fast becoming the top choice for digital retail payments. In terms of the value of transactions, UPI is already way ahead. India's UPI surge nears a new milestone The value of UPI transactions last month crossed 25 lakh crore rupees, 12 times that of all card transaction value. In terms of daily transaction volume, UPI is set to surpass that of global payments behemoth Visa soon. That will make UPI the world's largest retail interbank payment settlement network. In terms of volumes, Visa does not share daily transaction details. Still, looking at the figures available, UPI is fast closing in on transaction volumes through card networks. On June 1 and 2, UPI reported 644 million and 650 million transactions, respectively. That is just above the visa's FY-24 global daily average of 639 million. The number of daily transactions reported by UPI increased from 630 million in early May to about 650 million in just the first two days of June. UPI experiences a 5-7 per cent month-on-month rise and a 40 per cent yearly growth. That is driven by an increase in internet penetration and more individuals embracing digital payments. Transactions processed by Visa are increasing at a rate of 10 per cent each year. The current upward trend suggests that, over the next two or three months, UPI will have more daily average transactions than Visa. The new milestone will make it even more remarkable because of the difference in the payment settlement methodology of card networks and the UPI. UPI's payment settlement approach is real-time, while card networks like Visa and Mastercard use deferred settlement methodology. UPI facilitates almost 85 per cent of all digital payments in the country. Not surprisingly, an RBI report showed India now accounts for nearly half of all real-time payment transactions.

The value of UPI transactions last month crossed 25 lakh crore rupees, 12 times that of all card transaction value.

World-beater in the making: India's UPI

China is intensifying efforts to tax citizens’ overseas income, expanding a campaign that once focused on the ultra-rich to now include less wealthy individuals.The broadened crackdown is part of Beijing’s attempt to boost fiscal revenue amid record budget deficits and economic headwinds, Bloomberg reported, citing people familiar with the matter.Tax officials are now scrutinising a wider range of offshore income, including investment returns, dividends, and employee stock options, Bloomberg said.These investment gains can be taxed at rates as high as 20 per cent. While last year’s campaign largely targeted individuals with assets exceeding $10 million, tax service providers are now seeing a surge in enquiries from clients with less than $1 million in assets.<h2>Broader surveillance as deficits soar</h2>The stepped-up enforcement comes as Chinese authorities seek to shore up revenue amid a weakening economy, rising stimulus spending, and diminishing local government income from land sales.According to Bloomberg calculations based on official data, China’s budget gap in the first four months of 2025 soared by more than 50 per cent year-on-year to over $360 billion—a record for the period.Total income in the central government’s two main fiscal accounts fell by 1.3 per cent from a year earlier, while expenditures surged by 7.2 per cent, exacerbating the deficit. Beijing’s stimulus measures, aimed at mitigating the impact of US tariffs and reviving domestic confidence, have increased pressure on the public coffers.Tax bureaus in cities such as Beijing and Shanghai, as well as provinces including Zhejiang, have issued public advisories urging residents to review and report their offshore income before the June 30 deadline for 2024 income declarations.According to Bloomberg, notices issued by the local governments show that they began coordinating enforcement efforts as early as March, after big data analysis revealed a number of residents had not reported overseas gains.In some cases publicised by tax authorities, individuals were asked to pay back overdue tax and penalties amounting to just over 127,000 yuan ($17,720), underscoring how enforcement is now reaching middle-income earners.<h2>Data sharing and the global tax net</h2>China’s latest tax push builds on its adoption of the Common Reporting Standard (CRS) in 2018—a global tax information-sharing framework developed by the OECD to combat tax evasion. Through CRS, China automatically receives data from nearly 150 jurisdictions regarding financial accounts held by Chinese residents abroad.While China’s tax laws have long mandated that residents declare and pay tax on worldwide income, enforcement had been lax until recent years. The shift coincides with President Xi Jinping’s “common prosperity” campaign, aimed at narrowing wealth gaps and increasing redistribution in the country.Amid domestic uncertainty, more Chinese investors have sought to move wealth abroad. Bloomberg data shows that mainland investors have funnelled over HK$658 billion ($83.9 billion) into Hong Kong-listed stocks via the cross-border trading link this year—more than double the outflows during the same period in 2024.Bloomberg Intelligence forecasts that personal investable assets in mainland China could soar to $80 trillion by 2030, with overseas investments rising to 11 per cent of household investable wealth, up from 8 per cent in 2023.As Beijing broadens its tax net and enhances surveillance of offshore wealth, analysts say middle-class Chinese investors with modest foreign holdings are increasingly likely to come under scrutiny. With the deadline looming and enforcement ramping up, the message from Chinese tax authorities is clear: no overseas income is too small to escape attention.

The broadened crackdown is part of Beijing’s attempt to boost fiscal revenue amid record budget deficits and economic headwinds.

China is intensifying efforts to tax citizens’ overseas income, expanding a campaign that once focused on the ultra-rich to now include less wealthy individuals. The broadened crackdown is part of Beijing’s attempt to boost fiscal revenue amid record budget deficits and economic headwinds, Bloomberg reported, citing people familiar with the matter. Tax officials are now scrutinising a wider range of offshore income, including investment returns, dividends, and employee stock options, Bloomberg said. These investment gains can be taxed at rates as high as 20 per cent. While last year’s campaign largely targeted individuals with assets exceeding $10 million, tax service providers are now seeing a surge in enquiries from clients with less than $1 million in assets. Broader surveillance as deficits soar The stepped-up enforcement comes as Chinese authorities seek to shore up revenue amid a weakening economy, rising stimulus spending, and diminishing local government income from land sales. According to Bloomberg calculations based on official data, China’s budget gap in the first four months of 2025 soared by more than 50 per cent year-on-year to over $360 billion—a record for the period. Total income in the central government’s two main fiscal accounts fell by 1.3 per cent from a year earlier, while expenditures surged by 7.2 per cent, exacerbating the deficit. Beijing’s stimulus measures, aimed at mitigating the impact of US tariffs and reviving domestic confidence, have increased pressure on the public coffers. Tax bureaus in cities such as Beijing and Shanghai, as well as provinces including Zhejiang, have issued public advisories urging residents to review and report their offshore income before the June 30 deadline for 2024 income declarations. According to Bloomberg, notices issued by the local governments show that they began coordinating enforcement efforts as early as March, after big data analysis revealed a number of residents had not reported overseas gains. In some cases publicised by tax authorities, individuals were asked to pay back overdue tax and penalties amounting to just over 127,000 yuan ($17,720), underscoring how enforcement is now reaching middle-income earners. Data sharing and the global tax net China’s latest tax push builds on its adoption of the Common Reporting Standard (CRS) in 2018—a global tax information-sharing framework developed by the OECD to combat tax evasion. Through CRS, China automatically receives data from nearly 150 jurisdictions regarding financial accounts held by Chinese residents abroad. While China’s tax laws have long mandated that residents declare and pay tax on worldwide income, enforcement had been lax until recent years. The shift coincides with President Xi Jinping’s “common prosperity” campaign, aimed at narrowing wealth gaps and increasing redistribution in the country. Amid domestic uncertainty, more Chinese investors have sought to move wealth abroad. Bloomberg data shows that mainland investors have funnelled over HK$658 billion ($83.9 billion) into Hong Kong-listed stocks via the cross-border trading link this year—more than double the outflows during the same period in 2024. Bloomberg Intelligence forecasts that personal investable assets in mainland China could soar to $80 trillion by 2030, with overseas investments rising to 11 per cent of household investable wealth, up from 8 per cent in 2023. As Beijing broadens its tax net and enhances surveillance of offshore wealth, analysts say middle-class Chinese investors with modest foreign holdings are increasingly likely to come under scrutiny. With the deadline looming and enforcement ramping up, the message from Chinese tax authorities is clear: no overseas income is too small to escape attention.

The broadened crackdown is part of Beijing’s attempt to boost fiscal revenue amid record budget deficits and economic headwinds.

China widens tax crackdown to middle-class overseas investors

The UK's Office for National Statistics (ONS) has admitted that the annual inflation rate for April was overstated due to a data error stemming from a government department. The ONS announced on June 5 that the actual consumer price inflation for the 12 months to April 2025 was 3.4 per cent, not the initially reported 3.5 per cent.The discrepancy arose from an error in tax data provided by the Department for Transport (DfT), specifically related to Vehicle Excise Duty (VED). The faulty figures incorrectly inflated the number of newly registered vehicles subject to first-year VED rates, mistakenly pushing up the index used to calculate inflation.“This issue was isolated to the Vehicle Excise Duty component of consumer price inflation,” the ONS said in a statement. “The error overstated the number of vehicles subject to higher VED rates, thereby marginally inflating both the Consumer Prices Index (CPI) and the Retail Prices Index (RPI) by 0.1 percentage points.”<h2>ONS faces further scrutiny over data integrity</h2>The ONS clarified that no other time periods or inflation statistics have been impacted, and it will not revise April’s official CPI figures retroactively. However, corrected and properly weighted data will be used starting with the release of May’s inflation figures, scheduled for June 18.This latest data slip comes at a sensitive time for the statistics body, which is already under pressure following recent criticisms over the accuracy of its labour market figures.In April, the UK government initiated a formal investigation into the reliability and effectiveness of the ONS’s published economic data, raising broader concerns about the robustness of official statistical reporting.“The ONS is reviewing its quality assurance processes for external data sources in light of this issue,” the agency said, while stressing that the DfT’s official statistics remain unaffected.Despite the relatively minor scale of the revision, the correction underscores the significant impact that even small data errors can have on headline economic indicators. Analysts note that inflation data feeds directly into interest rate decisions and public sentiment about the economy, making statistical accuracy critical.All eyes will now be on the May inflation release to ensure that corrected methodologies yield more reliable results.

Faulty vehicle tax data pushed inflation 0.1 percentage points higher.

The UK's Office for National Statistics (ONS) has admitted that the annual inflation rate for April was overstated due to a data error stemming from a government department. The ONS announced on June 5 that the actual consumer price inflation for the 12 months to April 2025 was 3.4 per cent, not the initially reported 3.5 per cent. The discrepancy arose from an error in tax data provided by the Department for Transport (DfT), specifically related to Vehicle Excise Duty (VED). The faulty figures incorrectly inflated the number of newly registered vehicles subject to first-year VED rates, mistakenly pushing up the index used to calculate inflation. “This issue was isolated to the Vehicle Excise Duty component of consumer price inflation,” the ONS said in a statement. “The error overstated the number of vehicles subject to higher VED rates, thereby marginally inflating both the Consumer Prices Index (CPI) and the Retail Prices Index (RPI) by 0.1 percentage points.” ONS faces further scrutiny over data integrity The ONS clarified that no other time periods or inflation statistics have been impacted, and it will not revise April’s official CPI figures retroactively. However, corrected and properly weighted data will be used starting with the release of May’s inflation figures, scheduled for June 18. This latest data slip comes at a sensitive time for the statistics body, which is already under pressure following recent criticisms over the accuracy of its labour market figures. In April, the UK government initiated a formal investigation into the reliability and effectiveness of the ONS’s published economic data, raising broader concerns about the robustness of official statistical reporting. “The ONS is reviewing its quality assurance processes for external data sources in light of this issue,” the agency said, while stressing that the DfT’s official statistics remain unaffected. Despite the relatively minor scale of the revision, the correction underscores the significant impact that even small data errors can have on headline economic indicators. Analysts note that inflation data feeds directly into interest rate decisions and public sentiment about the economy, making statistical accuracy critical. All eyes will now be on the May inflation release to ensure that corrected methodologies yield more reliable results.

Faulty vehicle tax data pushed inflation 0.1 percentage points higher

UK inflation for April overstated due to data error, statistics department says

Tech billionaire Elon Musk has intensified his public opposition to Donald Trump’s flagship tax and spending bill, calling on Americans to demand that lawmakers reject the legislation.&nbsp;&nbsp;In a forceful social media post on Wednesday, Musk urged voters to “KILL the BILL,” accusing the president of pushing through a fiscally irresponsible agenda.

<blockquote class="twitter-tweet">Call your Senator, Call your Congressman, Bankrupting America is NOT ok! KILL the BILL&mdash; Elon Musk (@elonmusk) <a href="https://twitter.com/elonmusk/status/1930336497208832059?ref_src=twsrc%5Etfw">June 4, 2025</a></blockquote> <script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>

“Call your Senator, Call your Congressman. Bankrupting America is NOT ok! KILL the BILL,” Musk posted on X, formerly Twitter, to his 220 million followers.<h2> Musk’s June 4 rebuttal&nbsp;</h2>This latest post is part of Musk’s escalating campaign against what Trump calls his “One, Big, Beautiful Bill.”&nbsp; &nbsp;Musk’s opposition began earlier this week, with a flurry of posts on June 4 describing the legislation as a “disgusting abomination” that could plunge the United States into what he calls “debt slavery.”&nbsp;&nbsp;He had warned that the bill would “massively increase the already gigantic budget deficit to $2.5 trillion” and accused lawmakers of betraying fiscal conservatism.&nbsp;“I just can’t stand it anymore,” Musk wrote on June 4. “This massive, outrageous, pork-filled Congressional spending bill is a disgusting abomination. Shame on those who voted for it: you know you did wrong.” In another widely shared post, he mocked the bill by sharing a parody movie poster of “Kill Bill” and said, “A bill can be big or it can be beautiful, but I don’t know if it can be both.”<h2>Musk's shifting stance</h2>Musk’s criticism is not merely rhetorical. The timing of his public outburst is significant. Just days earlier, he officially stepped down as head of the Department of Government Efficiency — or DOGE — a short-term post he held in the Trump administration. His appointment was meant to symbolize a drive to rein in federal spending. But his sudden exit and immediate condemnation of Trump’s economic agenda suggest deep internal disagreements. &nbsp;The bill, which has already passed the House and is now under Senate review, combines major tax cuts, a sharp increase in the federal debt ceiling, and sweeping cuts to federal programs — including clean energy subsidies that benefit Musk’s electric vehicle company Tesla.&nbsp;&nbsp;Musk has called for a complete overhaul of the legislation. “A new spending bill should be drafted that doesn’t massively grow the deficit and increase the debt ceiling by five trillion dollars,” he wrote on X.&nbsp;On the same day Musk renewed his attack, the nonpartisan Congressional Budget Office released a troubling analysis of the bill’s financial impact. According to the CBO, the legislation would add $2.4 trillion to the federal deficit over the next decade.&nbsp;&nbsp;The office projected a $3.67 trillion drop in government revenue and only a $1.25 trillion decrease in federal spending through 2034. The report does not factor in any potential economic growth that could offset the losses — a key justification cited by the bill’s supporters.&nbsp;Despite Musk’s repeated attacks, the Trump camp appears undeterred. The former president has continued to tout the bill as a landmark achievement. “Passing THE ONE, BIG, BEAUTIFUL BILL is a Historic Opportunity to turn our Country around,” Trump posted recently.&nbsp;&nbsp;White House Press Secretary Karoline Leavitt dismissed Musk’s criticism, saying, “The President already knows where Elon Musk stood on this bill. It doesn’t change the president’s opinion. This is one big, beautiful bill and he’s sticking to it.”&nbsp;Musk’s public break with Trump marks a dramatic shift in their relationship. During his four-month stint in government, Musk had maintained a close and visible association with the administration. But behind the scenes, sources say tensions had been mounting.&nbsp;&nbsp;According to NBC News and Axios, the Trump White House rejected multiple proposals from Musk — including his suggestion to let the Federal Aviation Administration manage Starlink and his preferred candidate to head NASA.&nbsp;&nbsp;The administration also reportedly denied his request to extend his tenure beyond the 130-day legal limit for special government employees. Musk officially confirmed his departure on May 29, writing, “As my scheduled time as a Special Government Employee comes to an end, I would like to thank President Trump for the opportunity to reduce wasteful spending.”&nbsp; Trump hosted a farewell event at the White House the next day, publicly praising Musk’s efforts. However, just days later, Musk’s tone turned sharply critical, suggesting that the parting was not entirely amicable. Tesla’s business interests may also be a factor in Musk’s political stance. The bill proposes major rollbacks to Biden-era clean energy and electric vehicle incentives, which have directly benefited Tesla.&nbsp; Musk’s tenure in government had already coincided with a dip in Tesla EV sales — a trend that analysts partly attribute to his alignment with a deeply polarizing administration. Speaking at the Qatar Economic Forum on May 20, Musk signalled his intent to reduce his political visibility, saying, “I’m going to do a lot less in the future,” as quoted by Reuters.&nbsp; For now, however, he appears to be fully engaged in the political fight — positioning himself not just as a business leader, but as a fiscal hawk willing to take on the very administration he once served.&nbsp; Whether his campaign will succeed in derailing the legislation remains to be seen, but one thing is certain: Elon Musk is no longer pulling his punches.&nbsp;

This latest post is part of Musk’s escalating campaign against what Trump calls his “One, Big, Beautiful Bill.

Tech billionaire Elon Musk has intensified his public opposition to Donald Trump’s flagship tax and spending bill, calling on Americans to demand that lawmakers reject the legislation. In a forceful social media post on Wednesday, Musk urged voters to “KILL the BILL,” accusing the president of pushing through a fiscally irresponsible agenda.

Elon Musk publicly opposes Trump's tax and spending bill, urging Americans to reject it.

‘KILL the BILL’: Elon Musk attacks Trump’s tax plan again, warns of ‘debt slavery’

Investors seeking returns and concerned about the impact of US President Trump's trade war drove up gold prices, which had fallen in the first few sessions of June.&nbsp;But the yellow metal made a U-turn on Wednesday as dip-buying and trade talk uncertainty brought investors back into the haven asset. May wasn't a great month for gold as risk assets rallied significantly.<h2>Gold just $200 from a new all-time high</h2>Still, bullion is about 200 dollars away from its all-time high hit in April. The precious metal is up around 28 per cent this year in the multiple record-setting rally. Along with longer-dated bond yields, the rise in the haven asset is a warning shot at the deteriorating economic outlook.&nbsp;True to Wall Street's acronym of 'TACO,' 'Trump always chickens out,' the president has made outsized threats and followed through for a time, only to back off.&nbsp;Still, the one bet that has traders worried is the impact of such uncertainty on the real economy. Central bank buying spree is keeping gold well bid amidst changing geopolitical dynamics.&nbsp;More importantly, no one expects central banks to halt their massive purchases of gold. The buying spree by central banks has become a key factor in the record-breaking bull run in gold.&nbsp;Goldman Sachs researchers believe that central banks and sovereign wealth funds are amassing nearly 80 metric tons of gold every month on a global scale. That at current prices would be worth around 8.5 billion dollars.&nbsp;Trade data suggests that China and other unnamed purchasers via Switzerland account for a lot of the purchases, but much of the buying is done in secret.&nbsp;The World Gold Council reports that central banks and sovereign wealth funds have been purchasing 1,000 tons of gold per annum, which is equivalent to at least 25 per cent of the annual mined production.In January, HSBC surveyed 72 central banks, and almost a third of them intended to increase their purchases in 2025. None intended to sell.&nbsp;Goldman Sachs maintains its 3,700 dollars per ounce end-of-year prediction. On Wednesday, gold was trading at around 3,360 dollars, not far from its all-time peak of over 3,500 dollars in April.&nbsp;(With inputs from the agencies) &nbsp;

Bullion continues to surge, nearly $200 from its April peak, fueled by strong central bank purchases amid economic uncertainty.

Investors seeking returns and concerned about the impact of US President Trump's trade war drove up gold prices, which had fallen in the first few sessions of June. But the yellow metal made a U-turn on Wednesday as dip-buying and trade talk uncertainty brought investors back into the haven asset. May wasn't a great month for gold as risk assets rallied significantly. Gold just $200 from a new all-time high Still, bullion is about 200 dollars away from its all-time high hit in April. The precious metal is up around 28 per cent this year in the multiple record-setting rally. Along with longer-dated bond yields, the rise in the haven asset is a warning shot at the deteriorating economic outlook. True to Wall Street's acronym of 'TACO,' 'Trump always chickens out,' the president has made outsized threats and followed through for a time, only to back off. Still, the one bet that has traders worried is the impact of such uncertainty on the real economy. Central bank buying spree is keeping gold well bid amidst changing geopolitical dynamics. More importantly, no one expects central banks to halt their massive purchases of gold. The buying spree by central banks has become a key factor in the record-breaking bull run in gold. Goldman Sachs researchers believe that central banks and sovereign wealth funds are amassing nearly 80 metric tons of gold every month on a global scale. That at current prices would be worth around 8.5 billion dollars. Trade data suggests that China and other unnamed purchasers via Switzerland account for a lot of the purchases, but much of the buying is done in secret. The World Gold Council reports that central banks and sovereign wealth funds have been purchasing 1,000 tons of gold per annum, which is equivalent to at least 25 per cent of the annual mined production. In January, HSBC surveyed 72 central banks, and almost a third of them intended to increase their purchases in 2025. None intended to sell. Goldman Sachs maintains its 3,700 dollars per ounce end-of-year prediction. On Wednesday, gold was trading at around 3,360 dollars, not far from its all-time peak of over 3,500 dollars in April. (With inputs from the agencies)

Investor concern over Trump's trade war elevated gold prices after initial declines in June.

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