The Reserve Bank of India announced its fifth bi-monthly monetary policy for 2024-25 on Friday. The six-member Monetary Policy Committee (MPC) led by RBI Governor Shaktikanta Das decided to keep the benchmark repo rate unchanged at 6.5% for the eleventh straight meeting, and maintain the monetary policy stance ‘Neutral’.
Key points of the announcement are as follows:
Cash Reserve Ratio (CRR) slashed by by 50 basis points (bps) to 4%
Inflation forecast for 2024-25: 4.8%
Forecast for Q3 of 2024-25: 5.7%
Forecast for Q4 of 2024-25: 4.5%.
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