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Published 10:30 IST, October 9th 2024

RBI governor Shaktikanta Das projects inflation to reach 4.5% in FY25

RBI MPC has decided to keep the repo rate unchanged at 6.5 per cent for 10th straight session.

Reported by: Business Desk
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Shaktikanta Das | Image: Republic Business

Shaktikanta Das on inflation: In his post-Monetary Policy Committee (MPC) meeting address, Governor of Reserve Bank of India Shaktikanta Das shared that the committee expects the inflation to reach the mark of 4.8 per cent in the third quarter of the current financial year (Q3FY25) with the hopes of annual inflation taming down to 4.5 per cent in FY25 from 5.4 per cent recorded in the last fiscal. 

RBI MPC has decided to keep the repo rate unchanged at 6.5 per cent for 10th straight session. 

Addressing the inflation, the Governor said,  "Inflation horse has been brought to the stable within the tolerance band. Have to be careful about opening the gate."

Das also announced a shift in the policy stance to "neutral", stating that the central bank would focus on the durable alignment of inflation with its target while supporting growth. He noted that adverse global events pose a major threat to food inflation, a concern that continues to weigh heavily on the economy.

The MPC, now featuring three new external members, aims to strike a balance between inflation control and fostering economic growth as global risks continue to challenge the domestic economic landscape.

India’s real GDP growth for Q1 stood at 6.7 per cent, driven by a revival in private consumption, while Gross Value Added (GVA) increased by 6.8 per cent. High-frequency indicators have shown steady growth, with manufacturing PMI at 56.5 and services PMI at 57.7 for September, indicating robust expansion. 

Updated 10:30 IST, October 9th 2024

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