Global trade uncertainty, high capital costs may further hit FDI flows

Note that the US Budget deficit has increased structurally to over 6 per cent of gross domestic product (GDP), as against the past 50-year average of 3.8 per cent

Data released last week showed that India’s retail inflation rate declined to 2.8 per cent in May, the lowest in 75 months. Significant moderation in previous months enabled the Reserve Bank of India’s (RBI’s) Monetary Policy Committee (MPC) to reduce the policy repo rate by 50 basis points on June 6, as against the expectation of a 25 basis point cut. Along with front-loading the rate cut, the MPC noted that monetary policy is left with very limited space to support growth. Some private-sector economists have argued that the inflation rate in the current year will be significantly lower than