The Reserve Bank of India (RBI) has decided to keep the key repo rate unchanged at 6.5%, as it remains focused on 'withdrawal of accommodation'.

This is the eighth straight time that the central bank's 6-member Monetary Policy Committee (MPC) has decided to keep the key policy rates unchanged.

RBI Governor Shaktikanta Das has announced an increase in the projected real GDP growth for the financial year 2024-25, setting it at 7.2%, up from the previous estimate of 7%.

"GDP growth that we are now projecting for the current financial year 2024-25 is 7.2% with Q1 at 7.3%, Q2 at 7.2%, Q3 at 7.3%, and Q4 at 7.2%. The risks are evenly balanced," said RBI Governor Shaktikanta Das.

The Reserve Bank of India (RBI) plans to continue its focus on withdrawing its accommodative policy. Additionally, a normal south-west monsoon is anticipated, which is expected to enhance kharif crop production and improve water storage levels in reservoirs.

The RBI keeps the inflation forecast for FY25 steady at 4.5%. Shaktikanta Das affirmed the RBI's dedication to restoring inflation to the target of 4% over the long term.

The RBI keeps the inflation forecast for FY25 steady at 4.5%. Shaktikanta Das affirmed the RBI's dedication to restoring inflation to the target of 4% over the long term.

Source: India Today