Digest for 01 October, 2025
RBI Holds Repo Rate at 5.5%, Raises GDP Growth Forecast for FY26
The Reserve Bank of India's Monetary Policy Committee unanimously decided to keep the policy repo rate unchanged at 5.5%. The central bank cited moderating headline inflation and strong economic growth in the first quarter as key factors. Consequently, the Standing Deposit Facility (SDF) and Marginal Standing Facility (MSF) rates also remain unchanged. Alongside this decision, the RBI raised its GDP growth forecast for India for the 2025-26 fiscal year to 6.8%, signaling confidence in the country's economic trajectory.
US Government Shuts Down After Funding Deal Fails
The United States federal government has entered a shutdown after President Donald Trump and Congress failed to reach an agreement on a funding bill. The shutdown, the first since Trump returned to office, will see roughly 750,000 federal workers furloughed and many government services suspended. The political impasse stems from deep partisan divides over budget priorities, including Democratic demands for healthcare subsidies. The shutdown creates significant economic uncertainty, with potential ripple effects across the US and global economies.
Trump Unveils Gaza Peace Plan, Drawing International Welcome
US President Donald Trump has announced a comprehensive 20-point peace plan to end the war in Gaza. The proposal calls for the release of all hostages within 72 hours, a phased Israeli withdrawal, large-scale humanitarian aid, and international oversight for Gaza's reconstruction. The initiative has been welcomed by Palestine, a coalition of Arab nations, and other world leaders. Indian Prime Minister Narendra Modi also hailed the plan as a "viable pathway to long-term and sustainable peace" in West Asia.
Magnitude 6.9 Earthquake in Central Philippines Kills at Least 31
A powerful 6.9 magnitude earthquake struck the central Philippines, killing at least 31 people and injuring more than 100. The shallow quake, centered near Bogo city in Cebu province, caused houses and buildings to collapse, damaged roads, and triggered landslides. The death toll is expected to rise as search and rescue operations continue in the affected areas. The natural disaster compounds the humanitarian challenge for a region that was still recovering from a deadly storm just days earlier.
Over 90 Students Trapped After School Collapses in Indonesia
A massive rescue operation is underway in East Java, Indonesia, after a building at the al Khoziny Islamic boarding school collapsed, trapping at least 91 students in the rubble. The structure fell during afternoon prayers on Monday. At least three students have been confirmed dead and around 100 others injured. Over 300 rescue workers are desperately trying to free survivors from the debris of the century-old building, which was reportedly undergoing an unauthorized expansion at the time of the collapse.