The Reserve Bank of India predicts a 7% growth rate for the Indian economy in FY25, maintaining the benchmark lending rates at 6.5% for the sixth consecutive time. The Monetary Policy Committee (MPC) forecasts GDP growth rates for FY24 and FY25. Despite global economic challenges, India s economy exhibits resilience, supported by robust domestic activity and government initiatives, attracting foreign investments in various sectors, including technology manufacturing.
It is widely anticipated that the RBI MPC will maintain the repo rate at the current level of 6.5 percent. This would mark the sixth consecutive time when the rate remains unchanged.
During the bi-monthly Monetary Policy Committee (MPC) meeting, Reserve Bank of India Governor Shaktikanta Das highlighted concerns over elevated public debt levels globally, which could impact the future global financial system. He noted that high debt levels, especially in advanced economies, pose risks to macroeconomic stability.
The RBI Monetary Policy outcome could create minor volatility in the market on February 8, according to analysts. And, hint of a rate cut in near future from Governor Shaktikanta Das may set off a fresh rally in equities