RBI Keeps Rate Unchanged Amid Economic Growth: Analysts Predict Rate Cuts in Q4 FY25

The RBI held its benchmark interest rate at 6.5% post-election, maintaining focus on inflation amid robust growth. Economists anticipate rate cuts in Q4 FY25. The decision has instilled market confidence, with bankers highlighting the balanced approach between growth and inflation, and new measures promoting a resilient banking sector.

The Reserve Bank of India (RBI) decided on Friday to maintain the benchmark interest rate at 6.5 per cent, a move that has been met with approval by bankers and economists.

This is the first monetary policy committee (MPC) meeting held after the general elections, and it appears to have instilled confidence and stability in the market. Analysts are now predicting a potential rate cut in the latter half of FY25.

The RBI's decision was expected, given the ongoing efforts to balance inflation and economic growth. The central bank retained its projection for retail inflation at 4.5 per cent for the current fiscal year, assuming a normal monsoon. This outlook emphasizes the need for close monitoring of food prices amid prevailing uncertainties.

(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)