RBI kept the repo rate steady at 5.50%, citing global uncertainties and easing inflation, while maintaining a neutral stance.

• Inflation fell to 2.1% in June; the RBI cut its FY inflation forecast to 3.1% amid easing price pressures.
• Growth forecast held at 6.5%, but U.S. tariffs from August 1 may lower GDP by up to 40 bps.
• Bond yields rose slightly; markets cautious as tariff threats and weak global demand cloud investment outlook.