India's foreign exchange reserves fell by $711 million to $681.6 billion for the week ended June 5, according to the Reserve Bank of India on Friday.
This compares with a $938 million increase recorded in the previous week.
Foreign currency assets, the largest component of the reserves, fell by $2.7 billion to $543.4 billion, while gold reserves increased by $1.98 billion to $114.6 billion.
Westpac affirmed its existing expectation that the Reserve Bank of Australia's (RBA) monetary policy board will keep the cash rate unchanged at its June meeting, according to a Friday report.The preceding three rate hikes have given the central bank space to assess the trends of consumers and housing markets versus high inflation pressures as well as a boom in data centers and related investment.A lower peak for oil and, thus, petrol and diesel prices lowers the peak for headline inflation to 4.7% from 5%, the bank said, noting that this slightly lower track for underlying inflation is still higher than the RBA's own forecasts. Headline inflation is expected to reach 4.4% on an annual basis in the second quarter.Meanwhile, trimmed mean inflation was revised marginally lower across the second, third, and fourth quarters, lowering the peak in the year-ended rate to 3.8% from 4%. It is expected to return to the RBA's target band by the end of 2027 at 3% and ease to 2.4% by the end of 2028. It continues to see significant pass-through from higher fuel costs into some other prices.The bank continues to assume shipping from the reopening of the Strait of Hormuz and Gulf oil supply normalization will rise to around 10% of normal levels by end-June, with full normalization not occurring until mid-2027.
The World Bank trimmed its 2026 forecast for China to 4.2% on lower domestic demand and consumer confidence, according to a report released Thursday.The reading in June is 0.2 percentage points lower than the 4.4% growth forecast in January.The multilateral lender also attributed the downward forecast to continued property sector adjustment and a decline in the labor force.
The World Bank raised its economic growth forecast for India, citing resilient domestic demand, strong rural consumption and a recovery in urban demand that helped sustain economic activity early this year despite heightened geopolitical uncertainty.In its latest Global Economic Prospects report released Thursday, the international organization said it expects India's gross domestic product to expand 6.6% in 2026, slightly higher than its 6.5% forecast in January.The latest outlook nevertheless marks a slowdown from the 7.7% GDP growth recorded in 2025, reflecting softer private demand growth amid elevated energy prices and higher input costs.GDP growth is projected to accelerate to 7.2% in 2027 before easing to 7.0% in 2028, supported by strengthening domestic demand and a pickup in exports.