RBI monetary policy: MPC keeps FY25 inflation forecast unchanged at 4.5%
Also Read: RBI Monetary Policy LIVE Updates: RBI keeps repo rate unchanged at 6.5%; raises FY25 GDP growth forecast to 7.2%Prices of industrial metals have registered double-digit growth in the current calendar. year so far, these trends, if sustained, could accentuate the recent uptick in input cost conditions for farms.
On the other hand, the forecast of an above-normal monsoon bodes well for the cliff season, with procurement having surpassed last year's level. In fact, the preferred stocks of wheat and rice are well above the norms.
These developments could bring respite to food inflation pressures, particularly in cereals and pulses. The outlook on crude oil prices remains uncertain due to geopolitical tensions.
assuming a normal monsoon, CPI inflation for 2024–25 is projected at 4.5%," explained RBI Governor. Also Read: RBI Monetary Policy: Raises FY25 real GDP growth forecast to 7.2% from 7%Shaktikanta Das also stated that there are concerns that the final leg of disinflation in India will be long and difficult due to ongoing geopolitical conflicts, supply chain disruptions, and commodity price volatility.
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