For the sixth consecutive time, the Reserve Bank of India (RBI) Monetary Policy Committee (MPC) has decided to keep the key policy repo rate unchanged at 6.5% as expected by market participants. MPC to remain focused on withdrawal of accommodation to ensure that inflation progressively aligns to the target, while supporting growth. Marginal Standing Facility (MSF) & Standing Deposit Facility (SDF) rates unchanged at 6.75% and 6.25% respectively.
RBI Governor said FY25 Real GDP growth projected at 7%, Q1FY25 GDP growth target raised to 7.2% from 6.7%, Q2FY25 GDP growth target raised to 6.8% from 6.5%, Q3FY25 GDP growth target raised to 7% from 6.4% and Q4FY25 GDP growth target is at 6.9%.
On inflation front, he said FY25 CPI inflation seen at 4.5%, Q1FY25 CPI inflation forecast lowered to 5% from 5.2%, Q2FY25 CPI inflation forecast unchanged at 4%, Q3FY25 CPI inflation forecast lowered to 4.6% from 4.7% and Q4FY25 CPI inflation forecast is at 4.7%.
