Business
Indian Economy Remains Sound Amid Persistent Global Challenges: RBI
New Delhi: India’s economy continues to grow strongly on the back of robust domestic demand, despite persistent global challenges, according to the Financial Stability Report (FSR) of the Reserve Bank of India (RBI). The Financial Stability Report (FSR) is a half yearly publication that includes contributions from all financial sector regulators. It presents the collective assessment of the Sub Committee of the Financial Stability and Development Council on current and emerging risks to the stability of the Indian financial system.
Benign inflation in India, fiscal consolidation, and prudent macroeconomic policies have enhanced economic resilience, the RBI report noted on Wednesday. The domestic financial system remains sound, supported by strong balance sheets, easy financial conditions, and low market volatility, it supplemented, the report said.
The economy and the financial system, however, faces near-term risks from external uncertainties – geopolitical and trade related, it, however, cautioned. “These factors could increase exchange rate volatility, dampen trade, reduce corporate earnings, and lower foreign investment,” it noted.
A sharp correction in US equities could influence domestic equities and tighten financial conditions. However, the economy and financial system have strong buffers to withstand adverse shocks. Globally, growth has proven more resilient than expected despite trade tensions, geopolitical risks, and uncertainty around economic policy, supported by front-loaded trade, fiscal measures, and strong AI-related investment.
Nonetheless, risks to the outlook remain skewed to the downside due to still elevated uncertainty, high public debt, and the risk of a disorderly market correction, the RBI report said. “Financial markets appear strong on the surface but show growing underlying vulnerabilities. Sharp rise in equities and other risk assets, high hedge funds’ leverage, expanding opaque private credit markets and growth of stablecoins all heighten global financial system fragilities,” it added.
Ample liquidity is supporting risk-on sentiment across asset classes, but a sharp correction – especially if AI optimism fades – could spill over to the broader financial system, given rising interconnectedness, the RBI report said, delving into global macrofinancial risks.
Business
Energy price cap rises slightly as temperatures fall
Kevin PeacheyCost of living correspondent
Getty ImagesEnergy bills are rising for millions of households in England, Scotland and Wales as the new year begins, after Ofgem raised its price cap slightly.
Prices for those on variable tariffs are rising by 0.2% from now, the equivalent to a £3 annual increase for a household using a typical amount of gas and electricity.
Campaigners say this means billpayers are facing another winter of high energy prices with the latest increase, albeit small, coinciding with the coldest period of the year.
However, changes announced in the Budget should mean a fall in the cost of energy from April.
Regulator Ofgem’s energy price cap sets the maximum price for each unit of gas and electricity for those on variable tariffs, not the total bill – so those who use more energy, pay more.
The regulator’s cap is illustrated with a household using a “typical” amount of 11,500 kWh of gas and 2,700 kWh of electricity a year with a single bill for gas and electricity, settled by direct debit. This household would see a £3 rise in its annual bill from £1,755 to £1,758.
However, the amount used varies significantly between households, so the best way to calculate the change is to work out the percentage change from your own usual annual bill.
Standing charges – the fixed costs that cover the cost of running the network as well as government levies – will rise by 2% for electricity and 3% for gas, driving the overall increase.

Electricity unit rates are rising, offset by a slight fall in gas rates, meaning that heavy users of electricity will see the biggest impact.
The price cap affects England, Wales and Scotland, as the sector in Northern Ireland is regulated separately.
Ofgem says people can often save money by moving to a fixed tariff. That sets the unit price for a certain period of time, so anyone already on a fixed deal will not see a change now.
Emily Seymour, energy editor at consumer group Which?, said there were several deals on the market at prices lower than the price cap.
“As a rule of thumb, we’d recommend looking for deals cheaper than the current price cap, not longer than 12 months and without significant exit fees,” she said.
For many households, the heating will be on for longer as we enter January and February, with snow and ice warnings in place for some areas.
Some vulnerable households in certain areas of England, Wales and Northern Ireland are receiving cold weather payments, worth £25 a week, if the average temperature in a local area is recorded as, or forecast to be, 0C or below for seven days in a row.
Households can check their eligibility via a government online service. A separate winter heating payment operates in Scotland.
The £150 Warm Home Discount has been extended by the government to apply to more lower income households.
Simon Francis, from the End Fuel Poverty Coalition, said more needed to be done to help those who were struggling following the latest, small price increase.
“This is a case of every little hurts… we need to see much lower bills but also measures to keep people’s homes warmer every winter.”
James Jones and his wife Christine, like millions of other pensioners, have seen their winter fuel payment reinstated following a government U-turn on restricting the allowance.
“Obviously we’ve got it for the cold months. We’ve got the central heating on more. It’s made a big difference. You know it’s coming, so it’s your standby,” said Mr Jones.

But the Warrington couple are still cutting back on luxuries to cover bills.
“We get a rise on our pension but it gets taken off you by food, petrol and everything else going up all the time so really you don’t benefit,” he said.
There is some hope on the horizon in spring, though. In the Budget, Chancellor Rachel Reeves said some levies placed on energy bills would go, lowering bills for millions of households by £150 a year from April.
That included cutting a scheme that was designed to tackle fuel poverty and help reduce carbon emissions, as well as shifting some costs onto general taxation.
People on fixed deals in April would still benefit from the changes, the government has confirmed.
However, about £30 will be knocked off those annual savings from April to pay for maintaining gas networks and strengthening the electricity transmission network.
There are also signs of lower wholesale costs, paid by suppliers.
Analysts at energy consultancy Cornwall Insight predict an 8% drop in the price cap in April – the equivalent of a fall of £138 to £1,620 a year for a household using a typical amount of gas and electricity.
Business
Wheat sowing in full swing | The Express Tribune
ISLAMABAD:
Federal Minister for National Food Security and Research Rana Tanveer Hussain chaired 2nd meeting of the National Wheat Oversight Committee (INWP ) to review the wheat sowing progress for Rabi 2025-26, current wheat stock position, and implementation mechanisms under the Committee.
According to a statement issued on Wednesday, the Committee reviewed province-wise wheat sowing progress. In Punjab, wheat sowing has been completed in a timely manner with 90% early sowing. The province has also witnessed a significant increase in the use of certified wheat seed, along with higher uptake of urea fertiliser, largely due to improved availability and comparatively lower prices, noting that factors are expected to contribute to higher yields and a bumper wheat crop, reflecting the supportive role of the ministry in facilitating access to quality seed and fertilisers.
The meeting found that Sindh’s wheat sowing progress was satisfactory and has surpassed sowing targets. In Balochistan, sowing is currently lower due to insufficient rainfall; however, the shortfall is expected to be covered following upcoming rains.
The Committee was also briefed on the current wheat stock position. The food minister assured that there is no shortage of wheat in the country, and sufficient stocks are available.
Business
SBP unveils Financial Inclusion Index | The Express Tribune
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State Bank of Pakistan. Photo: File
KARACHI:
The State Bank of Pakistan (SBP) has launched Pakistan’s Financial Inclusion Index (P-FII), which comprehensively measures the state of financial inclusion in the country taking into account the access, usage and quality of financial services. The P-FII results show that the overall financial inclusion level stands at 58.1 for 2024.
Under the SBP Act 1956, improving financial inclusion is one of its key mandates and objectives. To achieve this aim, the central bank is implementing the National Financial Inclusion Strategy – NFIS 2024-28 – to expand access to financial services across the country and improve their use and quality, said a statement issued by the SBP on Wednesday.
“As outlined in the strategy, the development of P-FII reflects the SBP’s commitment to ensuring informed and evidence-based policymaking,” it said. The P-FII provides a comprehensive assessment of financial inclusion levels on the basis of 69 indicators reflecting banking, non-banking and payment services provided by banks and financial institutions.
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