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Global financial stability risks have increased: RBI

Hindustan Times Chandigarh

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July 01, 2025

Central bank warned about elevated trade tensions and policy uncertainty

- Sreedev Krishnakumar

MUMBAI: The Reserve Bank of India's latest Financial Stability Report released on Monday warns that elevated trade tensions, policy uncertainty, and geopolitical risks have increased global financial stability risks, with soaring global public debt and elevated asset valuations adding to vulnerabilities.

Despite these headwinds, the biannual report said that India continues to be a bright spot as its economy grew 6.5% in 2024-25 and is projected to maintain the same pace in 2025-26, supported by resilient domestic demand, strong macroeconomic fundamentals, and prudent policy measures.

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