RBI Cuts Interest Rates 0.50% on Easing Inflation

The Reserve Bank of India surprised markets by cutting its key interest rate by 50 basis points to 5.50%, citing significantly eased inflation that fell to 3.16%, well within its target. Meanwhile, in the United States, economists have raised concerns about the accuracy of inflation data after the Bureau of Labor Statistics reduced its data collection efforts due to staffing shortages caused by President Donald Trump's federal hiring freeze, which affected key consumer price index (CPI) surveys in various cities. This reduction in data collection, including halting efforts in Lincoln, Provo, and Buffalo, has led to worries about increased volatility and less reliable inflation metrics amid tariff impacts. The Bank of Canada kept interest rates steady, while the European Central Bank is expected to cut rates further, reflecting divergent monetary policy responses amid economic uncertainty. In Ghana, inflation fell sharply to 18.4%, prompting government statisticians to caution businesses against arbitrary price hikes and encourage local sourcing to mitigate cost pressures. Across these developments, there is a clear theme of central banks adjusting monetary policies in response to inflation trends, while data quality issues in the U.S. complicate clear economic assessments.