Key Highlights:
- The Monetary Policy Committee (MPC) of the Reserve Bank of India (RBI) has opted to maintain status quo on policy repo rate and stance.
- The RBI expressed confidence in the economic growth and pegged real GDP growth for FY25 at 7%.
- Overall inflation is projected at average of 4.5% for FY25, it is important to note that the disinflationary trend is not being sustained, with marginal increase in inflation in the H2FY25.
- The RBI will continue managing liquidity through both main and fine-tuning operations as necessary to uphold favourable money market conditions.
- Looking ahead, moderation of inflation in the Q2 FY25 will provide scope for the RBI to consider rate cuts.
