The Reserve Bank of India ( RBI ) has opted to keep the benchmark repo rate unchanged at 6.5 per cent for the eleventh consecutive meeting. The RBI’s Monetary Policy Committee (MPC), led by Governor Shaktikanta Das, maintained its “Neutral” stance, highlighting its focus on achieving price stability while supporting economic growth.Governor Das emphasised that while growth remains a priority, price stability is paramount for the well-being of the public. He noted that the “last mile of disinflation” is proving to be a prolonged and challenging process for economies worldwide.In addition to the rate decision, the RBI also announced a significant move to boost liquidity in the economy by reducing the Cash Reserve Ratio (CRR) by 50 basis points, bringing it down to 4 per cent. This change is expected to infuse Rs 1.16 lakh crore into the financial system, providing further support to the economy amidst global headwinds.

“Prudence and practicality demand that we remain careful and sensitive to dynamically evolving situations. Thus the status quo of MPC has remained appropriate and essential,” RBI governor Shaktikanta Das said. GDP and Inflation Forecasts for FY25 and FY26The RBI has revised its GDP growth forecast for FY25 to 6.6 per cent, with expectations of a steady growth trajectory throughout the year. The projections for the upcoming quarters are as follows:Q3FY25: 6.8 per centQ4FY25: 7.2 per centQ1FY26: 6.9 per centQ2FY26: 7.3 per centOn inflation, the RBI forecasted an overall rate of 4.8% for FY25, with a moderation expected in the latter half of the year:Q3FY25: 5.7 per centQ4FY25: 4.5 per centQ1FY26: 4.6 per centQ2FY26: 4 per centGovernor Das reiterated the importance of achieving a balance between growth and inflation, acknowledging the challenges of navigating the final stages of disinflation. As the RBI continues to steer India’s monetary policy, its decisions reflect an ongoing effort to maintain economic stability while fostering conditions conducive to sustainable growth.