Conflict in Middle East and fresh trade investigations by the US have resulted in increased volatility in the global markets: RBI bulletin

RBI in its March bulletin noted that the conflict in Middle East and fresh trade investigations by the US have resulted in increased volatility in the global markets. The second advance estimates of GDP for 2025'26 indicate sustained resilience of the Indian economy. High frequency indicators signal towards economic activity gaining momentum in February. CPI headline inflation picked up in February on account of food and beverages. System liquidity has remained comfortable and the total flow of financial resources to the commercial sector rose, with a rise in financing from both the bank and non-bank sources. India's foreign exchange reserves remain adequate to provide cushion against external shocks.

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