8 Dec 2023 , 01:02 PM
The RBI retained policy rates and stance unchanged, in line with the market expectations, indicating a continual long pause in the tightening cycle. This decision balances the need to control inflation while supporting economic growth. The RBI has revised GDP growth projection upwards to 7% for FY24 compared to previous estimate of 6.5%. This reflects the resilience of the Indian economy despite global uncertainties. While growth remains strong, inflation is expected to remain above the target of 4% in the near term due to supply-side shocks. The RBI highlighted that the Monetary policy will remain actively disinflationary to achieve the inflation target. Hence, the RBI retained inflation projected to 5.4% which is projected to decline towards closer to the target of 4% by the end of FY25.
India is well-positioned to withstand global uncertainties compared to other countries. Overall, the RBI’s policy reflects a cautious approach to managing the trade-off between growth and inflation. While the economy is performing well, inflationary pressures remain a concern for now. The RBI’s focus on maintaining stability and anchoring inflation expectations will be crucial in guiding the Indian economy through the challenging global environment. We believe that the RBI’s future actions will depend on evolving data, and we continue to expect a long pause.
Related Tags
IIFL Customer Care Number
(Gold/NCD/NBFC/Insurance/NPS)
1860-267-3000 / 7039-050-000
IIFL Securities Support WhatsApp Number
+91 9892691696
www.indiainfoline.com is part of the IIFL Group, a leading financial services player and a diversified NBFC. The site provides comprehensive and real time information on Indian corporates, sectors, financial markets and economy. On the site we feature industry and political leaders, entrepreneurs, and trend setters. The research, personal finance and market tutorial sections are widely followed by students, academia, corporates and investors among others.
Stock Broker SEBI Regn. No: INZ000164132, PMS SEBI Regn. No: INP000002213,IA SEBI Regn. No: INA000000623, SEBI RA Regn. No: INH000000248
This Certificate Demonstrates That IIFL As An Organization Has Defined And Put In Place Best-Practice Information Security Processes.