**RBI Retains FY25 GDP Growth at 7.2% in October Monetary Policy Meeting**
The Reserve Bank of India (RBI) has maintained its FY25 GDP growth forecast at 7.2%, following its Monetary Policy Committee (MPC) meeting held from October 7-9, 2024. This decision comes amid a global economic environment marked by uncertainties, though India continues to display resilience.
Key highlights include:
1. **Repo Rate Unchanged**: The RBI kept the repo rate steady at 6.5% for the tenth consecutive meeting, citing a balanced approach between inflation control and economic growth
2. **Inflation Outlook**: The RBI continues to focus on curbing inflation, with retail inflation staying within its target for two consecutive months. The RBI expects inflation to average 4.5% in FY25, with quarterly projections slightly revised
3. **Policy Stance**: A potential shift to a neutral stance is anticipated in future meetings, though for now, the RBI remains in “withdrawal of accommodation” mode, allowing room for flexibility depending on inflationary trends.
4. **Economic Growth Prospects**: India's economy is supported by robust private consumption and early signs of increased private investment. While there has been some softening in growth indicators, the overall economic momentum remains healthy.
This decision reflects RBI's cautious optimism about India's economic trajectory while keeping a watchful eye on inflationary pressures. The central bank’s steady hand signals confidence in sustaining the country’s growth trajectory despite global challenges.
For detailed insights, follow more updates from the RBI MPC announcements.
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