Business

RBI Maintains Repo Rate at 6.5%; Projects Economic Growth For FY25

The Reserve Bank of India (RBI) has opted to keep the repo rate steady at 6.5% for the 11th straight time, reinforcing its neutral monetary policy stance.

RBI Governor Shaktikanta Das revealed on Friday that the Monetary Policy Committee (MPC) decided on this with a 4:2 majority during its meeting.

Das stated, “As a result, the Standing Deposit Facility (SDF) rate remains at 6.25 percent, and the Marginal Standing Facility (MSF) rate, along with the Bank Rate, stays at 6.75 percent.”

The Governor announced an updated GDP growth forecast for India for FY25, highlighting the nation’s evolving economic path.

“Real GDP growth for 2024-25, that is the current year, is now projected at 6.6 percent, with Q3 at 6.8 percent and Q4 at 7.2 percent. Real GDP growth for the first quarter of 2025-26 is likely at 6.9 percent, and the second quarter of 2025-26 at 7.3 percent,” Das added.

50 basis points have reduced the cash reserve ratio (CRR) to 4%. “This reduction will release Rs 1.15 lakh crore of liquidity into the banking system,” Das stated.

RBI Hikes Inflation Forecast; Stays Neutral

The RBI has raised the FY25 inflation forecast from 4.5% to 4.8%. Additionally, the MPC unanimously decided to maintain a neutral stance, focusing firmly on achieving the inflation target sustainably.

Das further remarked, “The mandate of the Reserve Bank of India is to maintain price stability while supporting the objective of growth.”

Highlighting India’s robust economic standing, Das noted, “As an economy, India has been growing at over 8 percent GDP growth in the last three years. Despite recent aberrations in growth and inflation trajectories, the economy continues its journey on a sustained and balanced path towards progress.”

He also underscored India’s potential in a changing global economic environment.

“As an economy, India has been growing at over 8 percent GDP growth in the last three years. Despite recent aberrations in growth and inflation trajectories, the economy continues its journey on a sustained and balanced path towards progress,” Das added.

Also Read: ISRO Successfully Launches ESA’s Proba-3 Sun Observation Mission

Mankrit Kaur

Recent Posts

Maha Kumbh 2025 Begins With Unprecedented Devotion & Global Participation

Maha Kumbh 2025 began with a powerful display of faith, devotion, and spiritual unity, marking…

11 mins ago

Delhi’s Air Quality Improves, Dense Fog And Cold Weather Persist

Delhi saw a notable improvement on Monday morning, where Air Quality Index (AQI) dropped to…

25 mins ago

CM Yogi Adityanath Welcomes Devotees To Maha Kumbh 2025; Highlights Faith & Modernity

As Maha Kumbh 2025 begins in Prayagraj, CM Yogi Adityanath greeted everyone on Paush Purnima…

36 mins ago

Maha Kumbh 2025: Youth And Devotees Unite To Take Holy Dip On Paush Purnima

Ahead of Maha Kumbh, devotees gathered at the sacred confluence of the Ganga, Yamuna, and…

54 mins ago

A Sacred Confluence Of Faith: PM Modi On Maha Kumbh 2025 In Prayagraj

PM Modi hailed the commencement of Maha Kumbh 2025, describing it as a 'very special…

1 hour ago

Maha Kumbh 2025: Massive Security Arrangements As Lakhs Of Devotees Take Holy Dip

The 45-day festival, which runs from January 13 to February 26, is expected to host…

1 hour ago