Why is India's central bank stimulating a healthy economy?
- Posted on June 25, 2025
- By Business News Today
- 2 Views

Why is India's central bank stimulating a healthy economy?

The Reserve Bank of India surprised economists with significant rate cuts despite positive economic indicators. This move, intended to stimulate consumption and investment amid global uncertainty, has confused investors, with bond yields initially rising. Concerns about household debt and declining savings may have driven the RBI's decision, but the effectiveness of this stimulus remains uncertain given limited monetary policy space.