31 May 2025, Sat

Reserve Bank has suggested that Monetary Policy Should Be Growth Supportive In Its 2024 25 Annual Report

Reserve Bank of India: The Reserve Bank of India (RBI), a week before the meeting of its next Monetary Policy Committee (MPC), made some indications about its stance on interest rates through its annual report for 2024-25. Earlier, the central bank had cut interest rates. Now a new repo rate will be announced in the month of June and people are expected to re -cut it.

This report mentioned that the pressure of inflation was reduced. Especially in February and March 2025, there has been a sharp decline in food and drink. Due to this, the inflation rate is estimated to be 4 percent next year. In such a situation, if the circumstances are favorable, then the policy can be relaxed. Economic growth is being estimated despite the global uncertainties quoting the data available by the central bank.

Monetary Policy Ho Growth Sports

The Reserve Bank said, in view of the decline in inflation and moderate growth, the monetary policy should also be a growth semapot. At the same time, one should also be conscious about the rapidly developing global microconomic conditions. GDP growth for FY 26 is estimated to be 6.5 percent. The six -member monetary policy committee of RBI has cut the policy repo rate so far from February to 50 basis points.

Prospects for 2025-26 promising

This report said, the possibility for the Indian economy in 2025-26 remains promising, which is being supported by the government’s constant emphasis on capital expenditure, healthy balance sheets of banks and corporates, improvement in financial conditions, continuous flexibility of service sector, continuous flexibility of service sector and strengthening in consumer and business optimism. Along with this, the report also warned about uncertainty about global trade, geopolitical tension and instability in the global financial market.

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