• Source:JND
Add as a preferred

RBI MPC: RBI Governor Shaktikanta Das, while addressing the post-MPC meeting press conference said that the GDP growth projection for the current financial year 2024-25 is 7.2% overall, while it will be 7.3% in Q1, and Q2 at 7.2%, Q3 at 7.3%, and Q4 at 7.2%. Earlier, the projection was that GDP growth for FY25 was at 7 percent. The central bank has revised to 7.2 percent.


If the growth projections for this year turn out to be true, this would be the fourth consecutive year in which growth would exceed 7%. The RBI Governor also noted that domestic economic activity in FY25 will remain resilient and that India's manufacturing PMI is strong and currently the highest in the world.

The MPC also increased its GDP growth projections for each of the four quarters of FY25. For Q1 FY25, the RBI now expects GDP growth of 7.3%, up from 7.2% earlier. Similarly, it raised its GDP projection to 7.2% in Q2FY25 from 6.8% earlier. For the third quarter, it increased its GDP growth forecast to 7.3% from 7% earlier, and for the fourth quarter, the Monetary Policy Committee raised its GDP growth forecast to 7.2% from 6.9%.

Also read: RBI MPC Meeting: Central Bank Keeps Repo Rate Unchanged At 6.5%

Meanwhile, the Monetary Policy Committee maintained its inflation forecast for fiscal year 2025 at 4.5%. Separately for each quarter, the RBI anticipates inflation to reach 4.9% in the first quarter, 3.8% in the second quarter, 4.6% in the third quarter, and 4.5% in the fourth quarter.

In April of FY24, during its first bi-monthly policy review, the RBI surprisingly decided to keep its benchmark interest rate steady at 6.5%. This pause followed a series of six consecutive interest rate increases that began in May 2022 and extended through February 2023, cumulatively raising the repo rate by 250 basis points to 6.5%.

Also read: Veg Thali Gets Dearer By 9% In May On Onion, Tomato Price Jump: Crisil