Policy Action
The Monetary Policy Committee (MPC) voted unanimously to keep the policy repo rate unchanged at 5.5%.
“Data is like garbage. You’d better know what you are going to do with it before you collect it.”
(Source: Unknown)
It was hot in the last week of June: 32°C in Zurich, 35°C in Milan and a scorching 40°C in Athens. I was in the thick of it, travelling across Europe for a sales roadshow. Ironically, Mumbai’s Monsoon offered far more pleasant weather. The European summer heat mirrored the heat in global conversations around policies, investments and uncertainties.
The announcement of the reciprocal tariffs by the US administration has roiled markets worldwide. Equities have sold off due to concerns about the outlook for economic growth. We know from experience that lingering uncertainty can cause businesses and consumers to put their decisions regarding investments and consumption on hold.
After a spell of strong returns for over three to four years, the equity market has been in correction mode in the last five months.
