RBI Maintains Status Quo on Policy Rates, Cuts CRR by 50 bps

Highlights:

• The MPC maintained the policy repo rate and stance with a 4:2 majority.
• The RBI has decided to reduce the CRR by 50 bps, aligning it with pre-pandemic levels.
• While the RBI has reduced the FY25 growth projections to 6.6%.
• CPI inflation projection was increased to 4.8%.
• We expect RBI to go for a shallow rate of 50 bps in CY2025.

RBI_-_MPC_December_2024