RBI Monetary Policy, Trump's Tariffs, Gaza Resolution And Delhi Elections: The Week That Was

The week after the Union Budget 2025 saw key events unfold, with the Reserve Bank of India's monetary policy in focus. The Delhi Assembly elections and the BMC Budget 2025 also made headlines.

Globally, US President Donald Trump's tariff talks stirred concerns, crude prices fluctuated on delayed sanctions, and tensions with China deepened. Trump proposed a US takeover of Gaza for reconstruction, making geopolitical developments a key highlight of the week.

NDTV Profit, in its weekly news wrap, brings you the major events shaping businesses, industries and global markets.

The Reserve Bank of India's Monetary Policy Committee on Friday reduced the benchmark lending rate for the first time in five years in an attempt to boost sluggish economic growth, comforted by easing inflation expectations.

India's Monetary Policy Committee, led by newly appointed RBI Governor Sanjay Malhotra, cut the benchmark repo rate by 25 basis points, while maintaining its neutral stance. This is the first time in two years that the MPC has changed the benchmark lending rate.

The MPC members include Nagesh Kumar, Saugata Bhattacharya, Ram Singh, Rajiv Ranjan, and M Rajeshwar Rao.

The MPC also decided unanimously to retain the stance to 'neutral' and to remain unambiguously focused on a durable alignment of inflation with the target, while supporting growth, said Malhotra.

US President Donald Trump's tariffs on China are driving oil toward a third consecutive weekly decline, as concerns mount that the escalating trade war will weaken demand. Investors fear that the tariffs—and the potential for further escalation—could slow global economic growth, dampening crude consumption and creating a surplus later in the year.

Adding to the uncertainty, Trump has pledged to boost US oil production, which could counteract the impact of newly imposed sanctions on Iran. While these sanctions may restrict supply from the OPEC member, increased US output could offset any shortfall, further pressuring prices.

Earlier on Monday, Trump put on hold the escalating trade war against Canada and Mexico by one month, much to the relief of global markets. These delays in tariffs come just a day after stock markets globally were jolted by a potential trade war. The US President did not announce a pause on China tariffs, as per Bloomberg report.

Apart from tariffs, President Donald Trump has proposed the US taking over the Gaza Strip and assuming responsibility for reconstructing the war-torn territory during a press conference with Israeli Prime Minister Benjamin Netanyahu. "The US will take over the Gaza Strip and we will do a job with it too," Trump said at the White House on Tuesday.

The Brihanmumbai Municipal Corporation, the country's wealthiest civic body, presented a Rs 74,427-crore budget for Mumbai's administration for the financial year 2025-26. This marks a 14.19% increase from the Rs 65,180.79 crore allocated in 2024-25.

Of the total budget, Rs 43,162 crore has been earmarked for capital expenditure, while Rs 31,204 crore is allocated for revenue expenditure.

The BMC has also proposed the construction of Mumbai Eye, a giant observation wheel modeled after the London Eye at a suitable location under a public-private-partnership model.

While healthcare, education and BEST grants took the centre stage. Mumbai Sewage Disposal Project, Goregaon Mulund Link Road, second phase of the Mumbai Coastal Road Project, which will connect Versova to Dahisar, were among some of the key infrastructure projects that received substantial funds.

Delhi witnessed a triangular contest in the elections, with the ruling AAP pitted against the main rival BJP, and the Congress, which once led the government in the national capital for 15 straight years. The voting across all the 70 assembly segments concluded on Wednesday in a single-phase. The overall turnout was 60.42%, as per the data released by the Election Commission.

The exit polls predict that Bharatiya Janata Party could be headed for a victory in the 70-seat Delhi assembly elections 2025, thereby ending its 27-year drought from power in the national capital.

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