Australia's RBA sees housing slowdown as India RBI holds rates

The Reserve Bank of Australia said higher interest rates are beginning to ease housing market conditions, signalling an early slowdown. Governor Michele Bullock noted that tighter monetary policy is affecting demand, but inflation remains “too high” and is expected to stay above target until mid‑2027, driven in part by global energy price spikes from the Middle‑East conflict. The RBA also forecast slower growth and a modest rise in unemployment, while highlighting continued investment in software, data centres and renewable energy.

In India, the Reserve Bank kept its repo rate unchanged at 5.25% despite rising inflation risks from soaring oil prices and geopolitical tensions in West Asia. The Monetary Policy Committee lowered the growth outlook to 6.6% and raised the inflation forecast to 5.1%, citing supply‑chain disruptions and higher energy costs. The decision maintains stable borrowing costs for households and businesses, providing short‑term relief while the RBI monitors external pressures on the rupee and foreign‑exchange reserves.