RBI Governor Shaktikanta Das-led Monetary Policy Committee announced to keep the policy rates unchanged at the fourth bi-monthly monetary policy meeting for FY25 today
The Reserve Bank of India (RBI) Governor Shaktikanta Das announced to keep the policy rates unchanged at the fourth bi-monthly monetary policy meeting for FY25 today, October 9. The RBI MPC has decided to change the policy stance from 'Withdrawal of Accomodation' to 'Neutral'.
This is the first RBI MPC meeting after three new external members appointed by the government on the panel last week. The government restructured the MPC by appointing Ram Singh, Saugata Bhattacharya, and Nagesh Kumar as its new external members. They take over the roles previously held by Ashima Goyal, Shashanka Bhide, and Jayanth R Varma.
Governor Das noted that domestic growth has sustained its momentum, and the global economy has remained resilient since our last meeting. However, downside risks persist due to geopolitical conflicts, financial market volatility, and elevated public debt.
The central bank increased the repo rate to 6.5 per cent in February 2023, and it has maintained that rate ever since.
The central bank has retained India’s real GDP growth forecast for FY25 at 7.2 per cent, Das said.
"Inflation horse has been brought to the stable within the tolerance band. Have to be careful about opening the gate," he said.
The CPI Inflation is projected at 4.1 per cent in Q2, 4.8 per cent in Q3, 4.2 per cent in Q4 and 4.3 per cent in Q1FY26.
Last month, US Federal Reserve slashed its benchmark rates by 50 bps.
The government has instructed the RBI to maintain the Consumer Price Index (CPI) based retail inflation at a target of 4 per cent, allowing for a variance of 2 per cent either direction.