RBI kept the repo rate at 6.5 percent for the seventh time, said – inflation will remain at 4.5 percent in 2024-25 – Dainik Savera Times

Mumbai The Monetary Policy Committee (MPC) of the Reserve Bank of India has maintained the repo rate at 6.50 percent. At the same time, the Reserve Bank of India (RBI) on Friday maintained the inflation estimate for the current financial year at 4.5 percent. This is less than the estimate of 5.4 percent for the previous financial year 2023-24. Presenting the first bi-monthly monetary review of the current financial year, RBI Governor Shaktikanta Das said that assuming normal monsoon conditions this year, Consumer Price Index (CPI) based inflation for the current financial year is estimated to be 4.5 percent. Inflation is likely to be 4.9 percent in the first quarter, 3.8 percent in the second quarter, 4.6 percent in the third quarter and 4.5 percent in the fourth quarter.

Das has expressed the need to be cautious on the food prices front in view of the forecast of high temperatures between April-June. He also said that the impact of reduction in fuel prices will be visible on inflation in the coming months. However, Das said it seems that the elephant (inflation) has gone for a walk and the RBI wants it to remain in the jungle. The central government has given a target to the Reserve Bank of India (RBI) to keep consumer price index based inflation at the level of four percent (up or down two percent).