Back
PremiumRBI Monetary Policy Highlights: The Reserve Bank of India (RBI) Governor Shaktikanta Das announced the third bi-monthly Monetary Policy for FY25 today, August 8. The RBI Governor-headed six-member Monetary Policy Committee (MPC) decided to keep the benchmark repo rate unchanged at 6.5% and maintain the policy stance of ‘withdrawal of accommodation’. The MPC voted by a 4 to 2 majority to keep the policy rate unchanged. RBI retained real GDP growth estimates for FY25 at 7.2%, and CPI inflation projection at 4.5%. Stay tuned to our RBI policy live blog for the latest updates.
Contrasting with the recent global trend of monetary easing, the Reserve Bank of India (RBI) remains steadfast in its policy stance of “withdrawal of accommodation," prioritizing inflation stabilization over growth stimulation. Major central banks like the ECB and BoE have initiated rate cuts, while the US Fed is likely to cut rates in September, said Arsh Mogre, Economist at PL Capital - Prabhudas Lilladher Pvt. Ltd.
The RBI's decision to maintain its stance is driven by domestic inflation concerns, notably within the food sector. This focus suggests a calculated wait-and-see approach, aiming for sustainable achievement of the 4% inflation target before considering any rate adjustments. This approach positions the RBI to adapt flexibly and responsively once inflation aligns more consistently with its target, rather than transient growth spurts, potentially leading to a more stable and predictable policy environment for investors.
RBI MPC Meet Outcome Live: India’s GDP growth estimates and inflation forecast will be key to watch out for in the RBI policy today. In its June policy, the RBI raised the FY25 GDP growth forecast to 7.2%. The quarterly projections were - Q1 at 7.3%; Q2 at 7.2%; Q3 at 7.3% and Q4 at 7.2%.
Meanwhile, CPI inflation estimates for FY25 were retained at 4.5%, with Q1 at 4.9%; Q2 at 3.8%; Q3 at 4.6% and Q4 at 4.5%.
RBI MPC Meeting Highlights: Here are the key takeaways of the RBI Policy today:
Policy Measures:
Developmental and Regulatory Policies:
RBI MPC Meet Outcome Live: The RBI Governor-headed six-member Monetary Policy Committee (MPC) is widely expected to keep the benchmark repo rates unchanged at 6.5% and maintain the policy stance of ‘withdrawal of accommodation’. The central bank has kept the rates unchanged for the last 18 months. However, RBI’s estimates on India’s GDP growth and inflation forecast will be key to watch out for in the RBI policy today.
RBI MPC Meet Outcome Live: The Reserve Bank of India (RBI) Governor Shaktikanta Das will announce the Monetary Policy today, August 8. The RBI’s Monetary Policy Committee (MPC) held its third bi-monthly policy meeting for FY25 from August 6 to August 8.
