West Asia crisis, US trade probes increase global market volatility: RBI

The RBI bulletin said the West Asia conflict and fresh US trade investigations have increased volatility in global markets. It noted India’s economy remains resilient, with adequate forex reserves and improving economic activity despite rising inflation

Mumbai: The conflict in West Asia and fresh trade investigations by the US have resulted in increased volatility in global markets, the RBI bulletin said on Monday.

India’s foreign exchange reserves remain adequate to provide a cushion against external shocks, an article on the state of the economy published in the bulletin said.

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The second advance estimates of GDP for 2025-26 indicate sustained resilience of the Indian economy, it noted.

“High-frequency indicators signal that economic activity gained momentum in February,” the article said.

It further said that 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 an increase in financing from both bank and non-bank sources, it added.

The central bank, however, said the views expressed in the article are those of the authors and do not represent the views of the Reserve Bank of India.