Navigating economic horizons: RBI's role in FY 2024-2025
financial year 2024-2025, all eyes are on the Reserve Bank of India and its actions that will shape the country's economic landscape.
With the first monetary policy committee meeting for FY25 being on the hawkish side, the market is eager to gauge how and when will the central bank's stance change amidst the inflationary pressure sustaining.
The RBI's decisions in the coming months are expected to play a pivotal role in steering economic growth, managing inflationary pressures, and bolstering investor confidence amidst evolving domestic and global dynamics.
What can we expect from RBI in the financial year 2024-2025?
As the Reserve Bank of India gears up for its monetary policy committee meetings in the financial year 2024-2025, market participants are closely watching for signals and decisions that could impact India's economic trajectory.
India's economy showcased robust growth in the fourth quarter of 2023, registering an impressive 8.4% expansion and have been above 8% for the past 3 quarters, the fastest among major economies.
However, inflation remains a concern, hovering near the upper band of the RBI's 2%-6% target.
The first MPC meeting for FY25 was dusted off, five out of six members of India's rate-setting committee voted for a pause, maintaining the monetary stance at 'withdrawal of accommodation’.
Gist of the April 2024 MPC meeting
As the April MPC meeting concludes, and RBI maintains the status quo on the repo rate at 6.50%, the growth and inflation forecasts remain unchanged at 7% and
