The RBI-led MPC kept the repo rate steady at 6.5 per cent for the seventh time, confirmed RBI governor Shaktikanta Das. The committee also maintained its withdrawal of accommodation stance while concentrating on liquidity management to control inflation.
The rupee was little changed at the opening time on Friday amid expectations that the country s central bank will intervene, which countered weak risk appetite, a stronger US dollar and rising oil prices.
RBI MPC Meeting: The governor hinted at inflation nearing the 4 per cent target, stating, "The elephant in the room was CPI inflation. The elephant has now gone out for a walk and appears to be returning to the forest." These remarks were made during the announcement of decisions from the first bimonthly Monetary Policy Committee (MPC) meeting of FY25.
The GDP growth target for Q1 FY25 was adjusted to 7.1% from the previous 7.2%, while for Q2 FY25, it was revised to 6.9%, up from the previous forecast of 6.8%. The growth rate for Q3 FY24 remains unchanged at 7%. For Q4FY25, the RBI revised the growth rate to 7% from the previous 6.9%.