India's GDP growth to ease in Q3 & Q4; Capex to remain tepid in run up to general elections: ICRA's Aditi Nayar

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steady at 6.5 per cent for the sixth consecutive meeting on February 8, 2024, and also decided to remain focused on the withdrawal of accommodation. In its latest minutes-of-the-meeting, RBI Governor Shaktikanta Das said that the current setting of monetary policy is moving in the right direction, with growth holding firm and inflation trending down to the target. Also Read: RBI MPC Minutes: Job on inflation front not over, ‘last mile’ of disinflation can be sticky; 5 key highlights "At this juncture, monetary policy must remain vigilant and not assume that our job on the inflation front is over.

We must remain committed to successfully navigating the ‘last mile’ of disinflation which can be sticky,'' said Das. As markets are front-running central banks in anticipation of policy pivots, any premature move may undermine the success achieved so far. Price and financial stability are essential to sustain a long haul of high growth.

Policy imperative at the current juncture is to remain focused on achieving the four per cent inflation target on a durable basis, keeping in mind the objective of growth, explained Das. In the current economic scenario, the International Monetary Fund (IMF) last month, upgraded India’s growth outlook on the back of better-than-expected resilience in its domestic demand. IMF now expects India’s GDP to grow by 6.7 per cent in FY24, 40 basis points higher than its previous forecast of 6.3 per cent given in the October 2023 update.