Asia Pacific News
LAST UPDATE: June 21, 2025
RBI Opted For Outsized Rate Cut to Boost Growth, Minutes Show
Minutes from the Reserve Bank of India’s June 6 meeting reveal a large 50 bps repo rate cut and a reduction in reserve ratio, driven by inflation falling to 2.82% in May. The decision aimed to stimulate consumption, investment, and accelerate monetary transmission (reuters.com).
Insight
The RBI’s aggressive, front-loaded easing reflects confidence that inflation is sustainably below target. By coupling rate cuts with CRR reduction, the central bank signaled an urgent push to revive growth amid global uncertainties—a decisive shift toward neutral monetary policy.
Political Woes Could Sink Thai Economy Deeper Into Malaise
Rising political instability in Thailand—marked by protests, coalition fractures and risk of government collapse—is threatening a fragile economic recovery. Growth is projected around 1%, consumer and industrial sentiment are at multi-year lows, and a US tariff threat looms .
Insight
The interplay of politics and economics is intensifying: uncertainty over budget approval and potential snap elections could deter investment and hit tourism. Beyond domestic triggers, external factors like US tariffs compound vulnerabilities.
