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RBI Monetary Policy Repo Rate: RBI revised retail inflation forecast for FY’25 to 4.8%, up from the earlier projection of 4.5%.
RBI MPC: Governor Shaktikanta Das Spoke On Inflation In India On December 06
RBI MPC Meeting December 2024: Reserve Bank of India Governor Shaktikanta Das on Friday said that inflation in India remains a key concern despite showing a downward trend.
RBI revised retail inflation forecast for FY’25 to 4.8%, up from the earlier projection of 4.5%.
Announcing the monetary policy decisions on December 6, Das said that monetary policy has a wide-ranging impact, and price stability is important for every segment of society.
The central bank kept the repo rate unchanged at 6.5%.
The last mile of inflation is turning out to be prolonged and arduous, Das added.
RBI’s Focus on Balancing Inflation Over Growth
A key objective of the RBI monetary policy is to maintain inflation within its target range, typically around 4%. Currently, inflation—especially food inflation—remains above this target, posing a challenge to economic stability.
Reducing the repo rate, while potentially boosting economic growth, could exacerbate inflationary pressures. As a result, the RBI is opting to hold rates steady, prioritising inflation control over aggressive growth stimulation. This approach aims to balance managing inflation and fostering sustainable economic progress.
