Restrictive policy will lead to growth sacrifice in 2025-26: MPC member Jayanth Varma
Jayanth Varma voted to reduce the repo rate by 25 basis points and to change the stance to neutral.
Jayanth Varma voted to reduce the repo rate by 25 basis points and to change the stance to neutral.
This headline rate has remained below 5% for three consecutive months since March 2024.
The final leg of this disinflation journey may be tough, says RBI governor Shaktikanta Das
Measures like OMO sales or Market Stabilisation Scheme (MSS) may be undertaken in the second half of the fiscal year to sterilise the inflows.
The strong growth momentum, together with our GDP projections for 2024-25, give us the policy space to unwaveringly focus on price stability, says Shaktikanta Das
GDP growth for the current financial year 2024-25 is projected at 7%
RBI keeps the key policy rate unchanged at 6.5% for the sixth time in a row; to remain focussed on MPC ‘withdrawal of accommodation’
The wholesale inflation in food index increases to 4.69% in November 2023 from 1.07% in October 2023
The MPC decided by a majority of 5 out of 6 members to remain focused on the 'withdrawal of accommodation'.
A revival in earnings is expected in line with a pause on interest rate hike by the RBI, which is going to result in the improvement of interest to 4.5-5.0 times in Q3 FY24