The Reserve Bank of India (RBI), in its November 2025 Bulletin, has issued a cautionary note on the current state of global financial markets. The central bank observed that several major economies are showing signs of “heightened exuberance”, driven by rising asset prices, increased risk-taking, and excess liquidity. According to the RBI, these trends indicate that global markets may be overheating.
At the same time, the RBI’s tone is not entirely pessimistic. While the global environment looks fragile, the central bank believes that coordinated efforts by governments and regulators worldwide could restore balance. This mix of caution and optimism reflects the complex global financial landscape that investors are navigating today.
The Bulletin pointed out that easy monetary conditions across developed markets continue to push investors toward riskier assets. Rapid inflows into equities, bonds, and alternative assets have raised the possibility of asset bubbles. The RBI warned that even a small policy shift or geopolitical event could trigger sharp corrections.
Despite this uncertainty, the RBI remains positive about India’s economic prospects. The central bank stated that a joint push through fiscal policy, stable monetary support, and strong regulatory oversight can help India attract significant private investment. Such investment, it said, will be crucial for driving the next phase of economic growth.
India’s macro indicators, according to the Bulletin, remain resilient. Inflation is stabilising, industrial output is gradually improving, and credit growth is rising. These factors position India well at a time when global markets appear stretched.
For readers of MoneyFinx, this update carries important implications. Investor sentiment, interest-rate expectations, and liquidity conditions all play a major role in shaping equity performance, mutual fund returns, and loan costs. A change in any of these can influence personal finance decisions, from home loans to SIP investments.