Global economic outlook exhibits steady though uneven expansion: RBI Governor

Global economic outlook exhibits steady though uneven expansion, the RBI governor stated while keeping benchmark policy rates unchanged for the eighth consecutive review since February 2023. Manufacturing is indicating slowdown, while services activity is holding up. Notwithstanding sticky services prices, inflation is receding grudgingly across major economies. With varying outlook for growth and inflation across countries, monetary policy is showing signs of divergence across jurisdictions. Several central banks are cautiously moving towards policy pivots through forward guidance and rate cuts; at the same time, there has been tightening by a few central banks. Global financial markets are exhibiting volatility. Bond yields and the dollar index have softened since the last meeting.