Policy Repo Rate Steady
The RBI has kept the repo rate unchanged at 6.50%, ensuring borrowing costs remain stable
for
businesses and consumers.
Inflation vs Growth
The RBI aims to
balance inflation control
with economic growth, targeting a durable alignment to the
4% inflation goal.
Food Inflation Stays High
Food prices remain a concern for Q3, with easing expected between
January and March 2025.
Manufacturing Recovery Signs
High-frequency data suggests a recovery in manufacturing and rural demand,
supported by festive spending.
Elevated Consumer Price Inflation
CPI is projected
at 4.8%
for 2024-25, with a Q3 forecast of
5.7% before falling in Q4.
Resilient Services Sector
The services sector remains strong despite pressures on
manufacturing and industrial activity.
FY25 Growth Projections
The RBI reduced India’s FY25 GDP growth forecast to
6.6% from 7.2%
, revising Q3FY25 to 6.8%, Q4FY25 to 7.2%, and
Q1FY26 to 6.9%.